Investors have given up the ‘wait-and-see’ attitude, and are beginning to buy gold, pushing the price up.
The gold price on August 6 unexpectedly bounced back to the VND13mil/tael ($812.5) level. Prior to that, analysts still reported that investors were maintaining the wait-and-see attitude, because they were still wavering between injecting money in the stock market and buying gold. The gloomy stock market has prompted investors to withdraw money from the stock market to invest in gold; however, investors remain hesitant to do that.
On August 2, PNJ, Bao Tin and SJC announced the purchasing price of VND12,910,000/tael, while AAA bar gold had the lower price at VND12,890,000/tael. Meanwhile, the selling price was VND10-40,000/tael higher than the purchasing price. PNJ, for example, had the selling price at VND12,950/tael, and SJC at VND12,960,000/tael.
In the world’s market, the gold price has recovered after one week of staying at low levels. At 10.30 am on August 6, gold was traded at $672.5/oz, an increase of $6.5/oz over the last trading session of the previous week.
The gold price in New York has also increased by $6.5/oz (delivery in September) to $683.8/oz.
On the domestic market, PNJ gold was sold at VND13,060,000/tael in HCM City this morning.
Analysts said that the gold price would increase further this week as the result of the world’s increased gold price. International press agencies reported that 17 out of 27 strategists and analysts said in a poll conducted by Bloomberg that they thought the gold price would increase further in the next trading sessions. Only one believes that the gold price could decrease this week, while the other nine said that there would be no big fluctuations.
The devaluation of the greenback occurred after the US made public figures about job creation, which was lower than expected. The number of jobs created in July was the lowest since February.
However, experts from big investment funds in the world have said that the gold price will likely come back to the $650/oz level in August before witnessing new increases at the year’s end.
Source: VNE
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