The global gold price fell sharply to nearly US$1,700 an ounce due to the strong appreciation of the US dollar. Meanwhile, the domestic price of SJC gold bars decreased slightly, causing the gap between domestic and international gold prices to widen to more than VND20 million per tael.
SJC Company quoted SJC-gold price at VND67.75 million per tael for buying and VND68.55 million per tael for selling, down VND50,000 per tael compared to the previous day at 5 p.m. in Ho Chi Minh City.
At the same time in Hanoi, PNJ Company bought SJC gold at VND67.82 million and sold at VND68.55 million per tael, down VND80,000 in the buying rate and VND100,000 in the selling rate.
On the world gold market, the gold price closed down by more than $25 an ounce to $1,711.4 an ounce - the lowest price in more than a year in New York on the night of July 14.
In the Asian market, spot gold on the Kitco floor dropped to $1,703.8 an ounce at around 3.30 p.m. on July 15 (Vietnam time). After conversion, this price is equivalent to VND47.8 million per tael, about VND20.75 million per tael lower than the domestic SJC gold price.
While the price of SJC gold is nailed at a high level, other 9999-gold rings are currently lower than the price of SJC gold bars by about VND15-16 million per tael. Specifically, PNJ Company listed the price of 9999-gold rings at VND53.6 million per tael for buying and VND54.6 million per tael for selling. DOJI Company purchased 9999-gold rings at VND53.35 million per tael and sold them at VND52.85 million per tael.
The global gold price plunged steeply as the US dollar set a 20-year high because this asset is priced in the US dollar. Even if gold is a leading anti-inflation asset, the precious metal has failed to play its role because of rising interest rates - putting gold - a non-yielding asset, at a disadvantage.
Meanwhile, with inflation in the US at the highest level in 40 years, the US Federal Reserve (FED) certainly will continue to raise interest rates on the US dollar in the near future, so the US dollar will prolong the upward trend. In addition, the oil price is falling to nearly $90 a barrel, which will drag down those of many other commodities, including gold.