Gold Prices in Vietnam Lag Behind Global Surge

Global gold prices have surpassed $4,600 per ounce, but domestic prices in Vietnam are increasing at a slower pace. SJC branded gold bars and gold rings saw an increase of 600,000 VND per ounce compared to the previous session, reaching 144.6-147.6 million VND per ounce for bars and 144.1-147.1 million VND per ounce for rings.

When converted to Vietnamese dong, the world gold price is around 146 million dong per tael, which is about 1.6 million dong per tael lower than the selling price of SJC gold bars. This indicates that the increase in domestic gold prices is lower than that of world prices, causing the difference between the two markets to continue narrowing.

Economist Nguyen Quang Huy believes that the slower increase in domestic prices can be attributed to various factors such as actual supply and demand, exchange rates, liquidity, inventory, and buyer sentiment. He also notes that domestic purchasing power has not yet increased proportionally with the rise in international prices.

Dr. Le Ba Chi Nhan points out three main reasons for the slower increase in domestic gold prices. Firstly, the price difference for gold in the domestic market is narrowing. Secondly, domestic supply and demand are playing an increasingly important role. And thirdly, gold businesses are more cautious in pricing due to rapid fluctuations in world prices.

Experts predict that gold will likely remain at a high level in the near future and still have room for further increases, but with very high volatility. Mr. Nhan believes that if the price maintains above $4,600 per ounce, the upward momentum could continue and the market could head towards higher price levels.