Domestic gold prices took a downturn yesterday afternoon, even as global gold prices remained near record highs. This decline was attributed to a wave of profit-taking by gold holders, triggered by the continuous record-breaking prices of 9999 gold rings and the near-peak prices of SJC gold bars, at VND91 million (US$3,600) per tael.
However, the buy-back prices offered by gold retailers fell more sharply than their selling prices, resulting in an unprecedented spread of VND3.2 million/tael ($127) between buying and selling rates.
By late afternoon, the price of 9999 gold rings underwent a significant correction by retailers, with some reducing their prices by over VND2 million/tael ($79) compared to the morning. Specifically, Bao Tin Minh Co. lowered its buying and selling prices by VND2.1 million and VND1.4 million respectively, settling at VND86.1 million/tael ($3,408) for buying and VND89.5 million/tael ($3,543) for selling.
SJC and PNJ both decreased their buying prices by VND1.5 million and their selling prices by VND1.2 million, resulting in trading levels of VND86.7 million/tael ($3,432) for buying and VND89.5 million/tael for selling.
Phu Quy Group reduced its buying and selling prices by VND1.8 million and VND1 million correspondingly, listing them at 86.3 million VND/tael ($3,416) for buying and 89.5 million VND/tael for selling.
The price of SJC gold bars also saw reductions of VND1.8 million VND for buying and VND1.6 million for selling compared to the morning, as reported by SJC, PNJ, and Bao Tin Minh Chau. This placed their trading levels at VND86.4 million/tael ($3,420) for buying and VND89.8 million/tael ($3,555) for selling.
On the global market, spot gold on the Kitco exchange traded at $2,860 per ounce yesterday afternoon (Vietnam time), a decrease of approximately $6 from the New York closing price on February 5. This converted price is equivalent to VND87.4 million/tael ($3,460), lower than domestic SJC gold and 9999 gold ring prices by about VND2.1-2.2 million/tael ($83), compared to a difference of over VND3.1-3.3 million/tael ($126) this morning.
Observations in the afternoon of February 6 revealed bustling activity at both Mi Hong gold shops on Bui Huu Nghia Street (Binh Thanh District), with more customers buying than selling. Beyond gold bars, coins, God of Wealth gold, and jewelry, customers could also purchase 9999 gold rings and SJC gold bars in unlimited quantities.
The store manager explained that the availability of 9999 gold rings and SJC gold bars was due to recent customer sell-offs. However, this particular shop only repurchased SJC gold bars originally sold at their Mi Hong locations and did not accept SJC gold bars from other sources.
While less crowded than Mi Hong, the store of SJC Co. on Nguyen Thi Minh Khai Street (District 3) had approximately 25-30 people waiting to buy gold at around 3:30 p.m. The selling area, in contrast, was quiet, with only a few individuals selling small quantities of gold.
Huyen Nga from District 1, who had just purchased two maces of God of Wealth gold at the store of SJC Co., explained that she decided to buy because she saw the price drop by more than VND1 million compared to the morning. She paid VND8.99 million/mace ($356), anticipating larger crowds on the official God of Wealth Day. “As I have a tradition of buying a few maces of gold for good luck at the beginning of the year, I wasn't too concerned about the price”, Nga commented.
Customers at SJC Co. could purchase up to two taels of SJC gold without prior online registration, and two taels of gold rings or God of Wealth gold products per day. Previously, the company had limited customers to a half or one mace of 9999 gold rings and 1 tael of SJC gold, requiring online registration.
At the PNJ store on Hai Ba Trung Street (District 1), the number of customers buying God of Wealth gold and jewelry was also higher than usual. Notably, customers could still purchase 9999 gold rings and SJC gold bars in unlimited quantities, subject to availability.
For several months, all PNJ stores in HCMC had lacked SJC gold bars and 9999 gold rings for sale. “Over the past two days, due to the sharp increase in gold prices, customers sold back their gold rings and SJC bars to take profits, which has allowed us to replenish our stock”, the PNJ store manager explained.
