Gold prices plunge after record surge, peak buyers face heavy losses
VOV.VN - Vietnam’s domestic gold prices have tumbled sharply after a brief but dramatic rally to record highs, mirroring a steep fall in global prices and leaving many buyers who rushed in at peak levels facing heavy losses.
On February 2, Saigon Jewelry Company (SJC) and major gold retailers quoted SJC gold bars at VND165.6 million per tael for buying and VND168.6 million per tael for selling, down a further VND3.4 million from the previous weekend.
Earlier in the day, SJC gold was traded around VND164–167 million per tael, the lowest level since January 21. Compared with the historical peak of VND191.3 million per tael recorded on January 29, domestic gold prices have fallen by more than VND22–24 million per tael in just a few days.
Gold rings and 99.99% pure gold jewellery also extended losses. SJC quoted plain gold rings at VND165.1 million per tael for buying and VND168.1 million per tael for selling. Phu Quy Group listed prices at VND164–168 million, while Bao Tin Minh Chau offered higher levels of VND167–170 million per tael. Overall, gold rings have dropped more than VND20 million per tael from recent highs.
The sharp decline follows a sell-off in global markets. At around 9:30 a.m. local time, spot gold slid to about US$4,760–4,770 per ounce, down more than US$$120 from the previous session. Over the past several days, world gold prices have lost roughly US$830 per ounce.
Converted at the official exchange rate, global gold prices are currently around VND18 million per tael lower than domestic prices, indicating that the gap remains wide.
With prices retreating rapidly, investors who bought near the peak only days ago are now facing substantial losses. Those who purchased SJC gold at above VND190 million per tael may have lost more than VND20 million dong per tael, excluding bid-ask spreads.
A weekly survey by Kitco shows sharply divided sentiment. Of 18 analysts polled, seven expect gold to rebound toward US$5,000 per ounce, seven foresee further declines, and the rest anticipate sideways movement. Among retail investors, most still expect prices to rise, though recent volatility highlights the high risks of chasing prices at elevated levels.
World Gold Council: Vietnam hit by gold supply constraints
VOV.VN - Vietnam’s gold market has come under pressure due to supply constraints, with shortages of SJC gold bars widening the gap between domestic and international prices, according to the World Gold Council (WGC).
