Domestic gold bars tumble 13% as global sell-off rattles local market

Domestic gold bars tumble 13% as global sell-off rattles local market

Since hitting a historic high of VNĐ191.3 million on January 29, SJC gold has dropped VNĐ25.3 million.

Long queues form as people wait to buy gold in a Hà Nội street on January 29. — VNA/VNS Photo Trần Việt

Domestic gold prices extended steep losses on Monday, tracking a sharp global sell-off, with SJC gold bars falling more than VNĐ25 million per tael from last week’s record peak.

At 1pm, SJC listed gold bars at VNĐ163 million (US$6,150) per tael for buying and VNĐ166 million for selling, down VNĐ6 million from the previous close. Since hitting a historic high of VNĐ191.3 million on January 29, the price of SJC gold has dropped by VNĐ25.3 million.

Gold rings and 99.99 per cent jewellery also fell sharply, though prices varied by brand.

SJC quoted plain gold rings at VNĐ162.5–165.5 million per tael, down VNĐ5.6 million. Phú Quý traded similar products at VNĐ163–166 million, while Bảo Tín Minh Châu offered higher quotes at VNĐ164.5–167.5 million.

The domestic slide mirrored global prices.

Last night, spot gold fell to $4,763 per ounce, down $127 from the previous session and roughly $830 lower over several days. Kitco this afternoon quoted gold at $4,547 per ounce, equivalent to about VNĐ142.5 million per tael at the exchange rate of VNĐ26,000 per US dollar after conversion.

The historic sell-off came just two days after the metal posted its biggest single-session gain on record. Gold had surged to a peak of $5,602 per ounce on Thursday, marking a 29.5 per cent rise in January alone.

Heavy retail demand was seen at gold shops in Hà Nội despite the plunge.

At a store on Cầu Giấy Street, customers outnumbered sellers, with the shop limiting ring sales to a maximum of five taels per person.

Some buyers said they preferred shops offering immediate delivery, while others faced appointment slips stretching to April elsewhere.

Analysts cited extreme volatility in global precious metal markets after weeks of speculative buying, particularly from Chinese investors, pushed prices to records before a rapid reversal. Silver plunged 26 per cent on January 30, while gold dropped 9 per cent in one of its worst sessions in more than a decade, according to Bloomberg.

Traders said the reversal was triggered by a stronger US dollar and profit-taking after signs the rally had become detached from fundamentals. Market attention is now focused on whether demand from China will return after the sell-off.

Domestic traders said many shops temporarily restricted sales as queues lengthened amid the sharp price swings.

Bizhub