At 9:45 on 10/6, Saigon Jewelry Company (SJC) adjusted its gold bar prices for the third time. The company listed gold bars at 134,4 - 139,4 million dong, a decrease of 4,4 million dong per tael compared to yesterday. Mi Hong also saw a significant drop in gold bar prices, to 135,2 - 138 million dong per tael.

This morning, SJC also reduced plain gold ring prices to 134,8 - 139,8 million dong per tael. DOJI Gold & Gems Group (DOJI) and Phu Nhuan Jewelry Joint Stock Company (PNJ) both listed plain rings at 135 - 140 million dong. At Mi Hong, plain rings were traded at 135,2 - 138 million dong per tael.

Since early March, each tael of gold has fallen by over 55 million dong, a 27% adjustment. Compared to the beginning of the year, gold bar and plain ring prices are now 14-17 million dong per tael lower, representing a 10% decrease.

Domestic gold prices have fallen in sync with global trends. Concurrently, strong selling pressure from local investors has intensified the price drop, narrowing the gap with international rates. Experts attribute this further decline to concerns among some investors regarding a potential increase in gold supply, following news that a real estate developer is offering a policy to convert gold into house purchases, prompting early profit-taking.

For the first time in a long while, on 9/6, people queued to sell gold bars at SJC Nguyen Thi Minh Khai (TP HCM). *Photo: Quynh Trang*

In the international market, spot gold fell by 75 USD per ounce (1,7%) to the 4.185 USD range. When converted using Vietcombank's selling exchange rate, domestic gold prices are now only 6,7 million dong per tael higher than global prices.

Regarding the silver market, each ounce of silver on the world market decreased by over 1,5% during the day, reaching 64,25 USD. Domestically, Phu Quy and DOJI listed silver bar prices this morning at 2,4 - 2,5 million dong per tael, equivalent to about 65 - 67 million dong per kg, a drop of over 6% compared to yesterday's closing. Sacombank - SBJ listed silver at 2,48 - 2,56 million dong per tael.

Nguyen Quang Son, director of Private Wealth Management (North Star) at FIDT Joint Stock Company (FIDT), noted that gold is currently subject to two opposing forces. On one hand, high interest rates and capital costs hinder the precious metal's short-term breakout potential. On the other hand, demand for hedging against inflation, public debt, and geopolitical risks remains a significant supporting factor.

Therefore, a more probable scenario is that gold is currently in a correction or accumulation phase following a strong upward cycle, rather than entering a structural downtrend.

"A decrease in gold prices does not diminish its role as a hedge. The demand for long-term gold holdings persists, given many unresolved macroeconomic risks," Son commented.

Quynh Trang