Gold rings are equal in price to gold bars.

The price of 24K gold rings at SJC this morning increased by 200,000 VND in both buying and selling directions, up to 74.6-76.2 million VND per tael, only half a million VND lower than the price of gold bars of this brand.

At other gold shops, the price of gold bars increased even more, reaching the same level as gold bars. This morning, DOJI increased the buying and selling price of plain round rings to 75.65-76.95 million VND per tael, only 30,000 VND less than the price of SJC gold bars. Bao Tin Minh Chau listed the selling price of each tael of 24K round rings at nearly 76.7 million VND, equal to the price of this brand’s gold bars and only nearly 300,000 VND less than the price of SJC gold bars.

Meanwhile, gold bars continued to remain unchanged at 76.98 million VND per tael – for more than a month in a row, 1 million higher than the price the State Bank sold to 4 state-owned banks and SJC.

The increase in domestic gold prices is in line with the international market. At the end of the trading session on July 5, the world spot gold price increased by nearly 33 USD to 2,388 USD per ounce – the highest since early June. In total, the price of gold increased by more than 2% for the week.

Precious metals continued to rise thanks to a weak US jobs report, reinforcing expectations that the US Federal Reserve (Fed) will lower interest rates in September. Converted according to Vietcombank exchange rate, each tael of world gold is currently trading at 73.3 million VND. The difference between domestic and world gold prices is now just over 3.5 million VND.

 

Investors now expect a 72% chance of the Fed cutting rates in September. The probability of the Fed cutting rates a second time this year, at its December meeting, is also rising.

The dollar fell to a three-week low against a basket of major currencies on Friday after the jobs report was released. A weaker dollar makes gold less expensive for non-U.S. buyers.

Since early June, authorities have increased the supply of gold bars to the market by selling gold directly to four state-owned banks and SJC. Initially, banks and SJC sold gold directly at transaction points.

However, the demand for buying from people is still high, forcing 4 state-owned banks and SJC to switch to online sales (allowing buyers to order on the website and receive gold at the branch), instead of directly at their points of sale. This is to reduce the situation of gathering and waiting in long lines in front of transaction offices and branches.

At the State Bank meeting in late June, gold bar sellers said they would improve processes and technology to facilitate people with real needs and eliminate speculation. The management agency also reiterated its stance of “having enough resources and determination” to stabilize the domestic gold market.

Minh Son