In the domestic gold market in the morning of April 7, gold prices went up following the sharp rise of world prices.
At 9 o’clock, the price of SJC gold in Ho Chi Minh City was bought 54.95 million VND / tael by listed businesses, sold 55.35 million VND / tael, increased 100,000 VND / tael compared to yesterday.
In Hanoi, the listed companies of SJC gold bought 55.01 million dong / tael and sold 55.29 million dong / tael. The difference between buying and selling prices was narrowed to about 300,000 VND / tael.
The price of gold jewelry, 24K gold rings of all kinds also increased to around 50.5 million VND / tael purchased, 51.1 million VND / tael sold, but still lower than SJC gold over 4 million VND / tael.
By 9:00 a.m. Vietnam time, the spot world gold price was $1,737 per ounce, converted at the listed exchange rate of about VND 48.5 million/quantity, lower than SJC gold of about VND 6.8 million/quantity.
The increase in volatility was slower than the world price recovery, helping the gap between the domestic and foreign gold prices to narrow compared to the previous days, though still at a very high level.
On the foreign exchange market, the central exchange rate this morning announced by the State Bank at 23,229 VND / USD purchased, down 8 VND per USD compared to yesterday. USD prices at commercial banks continued to be stable around 23,000 VND / USD bought in, 23,180 VND / USD sold, unchanged from yesterday.
At the beginning of April 7 (according to Vietnamese time), the world gold price traded at 1,744 USD / ounce, an increase of 16 USD / ounce compared with the same period of the previous day.
After the US published the employment figures increased more than forecast, the USD continued to decline against many other strong currencies. Thus, today’s gold price (April 7) has an incentive to bounce back.
On the other hand, the interest rate on 5-year US bonds decreased from a peak of 0.99% per year to 0.91% per year and a 10-year term interest rate from 1.77% per year to less than 1.7% per year. Since then, financial investors have not strongly put capital into bonds. They move part of the cash flow into the precious metal. The price of gold rising hot is natural.
Meanwhile, many investors on Wall Street have strongly sold stocks after the US stock market increased strongly in the previous session. Accordingly, some people have put capital into the gold market, increasing the strength for the price of gold to go up.
However, when the International Monetary Fund (IMF) raised its forecast for global economic growth in 2021 from 5.5% to 6%, many people reduced their purchasing power, causing the rise in gold prices to stop.
Transactions on the market showed that at the beginning of April 6, gold price fluctuated in the region of 1,730 USD / ounce. However, when the USD weakened on a large scale, many investors increased their buying power. Gold price increased by 15 USD / ounce, from 1,730 USD / ounce to 1,745 USD / ounce.
At about 23:00 on the same day as Vietnam time, US President Joe Biden announced that 150 million doses of Covid-19 vaccine had been distributed, equivalent to 40% of the US population to be vaccinated and expected by April 19 Covid-19 vaccine will be distributed to the entire population of this country instead of May 1-5 as previously planned.
Perhaps this information makes investors think that the disease will soon be controlled, the US economy will grow strongly. From there, they reduced the need to shelter capital into gold. So the gold price was forced to go sideways and until 6 o’clock on April 7, it was traded at 1,744 USD / ounce.
Although today’s gold price showed signs of prosperity, analysts warned investors to be careful with the selling momentum of gold investment funds. Because, from the beginning of 2021 up to now, these funds have sold about 217 tons of gold and if they continue to “sell out”, no factor can help the price of gold.
Previously, from 9:00 am to 5:00 pm on April 6, the world gold price fluctuated slightly, so during this period, the price of SJC gold in Vietnam decreased by 50,000 VND / tael, closing the day at 55.25 million. VND / tael, 6.5 million VND / tael higher than the world price.
Thy Tho – Thai Phuong. Photo: Chau Thy
Source: nld.com.vn – Translated by fintel.vn