Vietnam gold prices surge by 11 million VND per tael in two days

Vietnam's domestic gold prices have experienced a sharp rebound, with SJC gold bars seeing an increase of up to 11 million VND per tael in just two days, pushing prices towards the 150 million VND per tael level. This recovery comes after a significant price decline, bringing the domestic SJC gold price to 147 million VND per tael for selling and 144 million VND for buying, an increase of 1.6 million and 1.8 million VND respectively from June 12.

Notably, the price gap between SJC gold bars and 9999 gold rings has narrowed considerably. Gold rings are now selling for 146.9 million VND per tael and buying for 143.9 million VND, only 100,000 VND less than SJC bars. Private gold shops have also reduced their buy-sell spreads to around 1.5 million VND per tael, down from 3-4 million VND just days prior. This adjustment reflects increased buying activity as domestic prices approached the globally converted prices.

Despite the domestic surge, global gold prices closed the trading week at $4,220.3 USD per ounce, equivalent to approximately 134.4 million VND per tael when converted at bank exchange rates. This means SJC gold bars are currently priced about 12.6 million VND per tael higher than the global market.

Over the past week, global gold prices fell by 2.3%, following a 4.6% drop the previous week. Prices briefly dipped to a six-month low of $4,020 USD per ounce. Concerns over the U.S. Federal Reserve potentially raising interest rates to combat inflation exerted downward pressure on gold. However, a slight de-escalation of tensions in the Persian Gulf allowed gold prices to recover. Despite this, global gold prices remain nearly $1,300 USD per ounce below their late January peak.

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In the long term, these adjustments are good.