The price of SJC gold rings is currently around 75.4 million VND per tael, which is about 1 million VND lower than other gold houses’ plain round rings. However, the price of SJC’s plain round gold rings decreased by 400,000 VND to 75.4 million VND per tael today due to a decline in the world market. This decrease reverses the sharp increase in prices on June 21. Meanwhile, the price of SJC’s 24K round ring has returned to the price range from the beginning of the week.
On the other hand, gold bars have remained steady for two weeks at around 77 million VND per tael, narrowing the gap between rings and bars to just over 1 million VND. The price of plain round gold rings at other gold houses ranges from 76 million VND to less than 1 million VND per tael, with some places even pricing bars at less than 1 million VND. DOJI Jewelry Group sells round rings for more than 76 million VND per tael, while Bao Tin Minh Chau sells plain round rings for nearly 76 million VND, which is about 600,000 VND higher than SJC’s ring prices.
Due to the strengthening of the USD and an increase in US government bond yields, gold prices dropped to $40 USD per oz last night. This caused a decline in world gold prices to $2,320 USD per oz on June 21, equivalent to a decrease of over $895m (or more than $1m) per kg traded globally. According to current data from World Gold Council (WGC), this decline was mainly driven by weak demand from major consumers such as China and India due to COVID-19 restrictions and high inventory levels in these countries. In addition, global economic uncertainty and political instability also contributed to this decline in demand for gold bars and coins worldwide.
The State Bank has increased its supply of gold bars into the market since early June by selling them directly to four state-owned banks and SJC at a premium of more than $38 USD/oz ($38/oz x $23/oz = $895). Despite stable gold bar prices due to increased supply from Central Banks like Vietnam and Russia and strong demand from physical buyers globally (particularly Chinese), there remains high demand for these products due to their perceived safe haven status during times of economic uncertainty or geopolitical tension (e.g., trade wars between US & China). As such, it is likely that we will see continued volatility in world gold markets until there are clearer signs that global economies are stabilizing again post-COVID-19 pandemic or until major players like China decide they need less inventory due
