Gold prices extend losses, bargain hunters keep buying

Gold prices extend losses, bargain hunters keep buying

Domestic gold prices have steadily declined throughout May, with SJC gold falling from around VNĐ167 million per tael in early May to below VNĐ160 million by the end of the month after a period of rapid gains.

Customers buy gold at a jewellery shop in HCM City. — Photo baotintuc.vn

Gold prices in Việt Nam extended their decline on Thursday, but retail demand remained resilient as buyers rushed to take advantage of lower prices after weeks of record highs.

Domestic SJC gold was quoted at around VNĐ155.5 million (US$5,900) per tael for buying and VNĐ158.5 million per tael for selling as of 11.30am, down VNĐ1 million from the previous session. (One tael is equivalent to 1.2 ounces.)

Gold ring prices also fell sharply, bringing cumulative losses over recent sessions to about VNĐ3 million per tael.

The correction has done little to dampen investor appetite.

Gold shops in HCM City reported heavy customer traffic from early morning, with many buyers queueing before opening hours to purchase small amounts of bullion.

Several retailers restricted purchases to one chỉ, equivalent to 3.75 grams, per customer and required buyers to present identification documents in an effort to prevent bulk purchases and speculative trading.

Many customers said the latest pullback offered an opportunity to accumulate gold after prices surged to record levels earlier this month.

“Gold prices were still too high a few weeks ago, so I held off on buying,” said Nguyễn Thị Thanh Huyền, a resident of Gò Vấp District, who arrived at a gold shop shortly after 7am to buy one chỉ of gold.

“Gold prices are still volatile, but I believe it remains a safe way to preserve wealth,” she told baotintuc.vn.

The domestic market has been tracking developments in global bullion prices, which have retreated in recent sessions after a strong rally.

Huỳnh Trung Khánh, vice chairman of the Vietnam Gold Traders Association, said the latest decline was mainly driven by international market movements as investors took profits following a prolonged period of gains.

According to Khánh, the correction is a normal market development after a rapid rise.

“However, gold prices could remain highly volatile because they continue to be influenced by geopolitical tensions, inflation concerns and monetary policy decisions in major economies,” Khánh said. 

Customers buy gold at a jewellery shop in HCM City. — Photo baotintuc.vn

Domestic gold prices have steadily declined throughout May, with SJC gold falling from around VNĐ167 million per tael in early May to below VNĐ160 million by the end of the month after a period of rapid gains.

Global gold prices recovered slightly on Thursday after touching their lowest level in nearly two months earlier in the session.

Spot gold rose 0.32 per cent to US$4,509.4 an ounce by late New York trading, according to market data. Prices fluctuated sharply throughout the session as investors reassessed expectations for US interest rates and monitored developments in the Middle East.

The rebound was partly supported by a weaker US dollar after reports that Washington and Tehran had reached a memorandum extending a ceasefire arrangement for another 60 days. The agreement still requires approval from US President Donald Trump before taking effect. 

Bizhub