Vietnam Gold Prices Near 3-Week High; SJC Bars Up 0.62%

Overview

Gold prices in Vietnam climbed to near a three-week high, with SJC gold bars (the benchmark domestic gold) rising 0.62% to VND145 million per tael. This mirrors a global rally that pushed spot gold up 1% to $4,432.74 per ounce, its highest level since June 5. The move is significant for the Vietnamese precious metals market, where SJC bars are the most widely tracked investment vehicle.

Key Facts

• SJC gold bars rose 0.62% to VND145 million per tael (US$5,548.44).
• Gold rings increased 0.97% to VND145.9 million per tael.
• Gold prices in Vietnam have fallen 5.1% so far this year.
• Global spot gold climbed 1% to $4,432.74 per ounce, hitting a two-month high.
• U.S. gold futures rose 1.7% to $4,492.60.
• Spot gold’s last high was on June 5, 2024.
• IG market analyst Tony Sycamore attributes the move to FOMO, short-covering, and safe-haven flows.

What Happened

According to a Reuters report, gold rose for a third straight session on Tuesday, reaching its highest level in more than two months. The rally was driven by investors focusing on upcoming U.S. inflation data for clues on the Federal Reserve’s interest-rate outlook. Spot gold climbed 1% to $4,432.74 per ounce, while U.S. gold futures rose 1.7% to $4,492.60.

In Vietnam, the Saigon Jewelry Company (SJC) gold bar price increased 0.62% to VND145 million per tael, while gold rings rose 0.97% to VND145.9 million per tael. The domestic market has seen a 5.1% decline year-to-date, reflecting earlier volatility. IG market analyst Tony Sycamore noted that the move is “being driven by a degree of FOMO from those who missed the dip to $4,000, some short-covering from speculative accounts, and a return of safe-haven flows.” He added that in the medium term, prices could break toward $5,000.

Market Context

SJC is not a listed ticker; the primary listed entity associated with gold trading in Vietnam is Sông Đà 1.01 (ticker: SJC) on the UPCOM exchange, which operates in the Construction & Materials sector. However, the price action described here pertains to the physical gold bar market, not the stock. The recent price context for the SJC ticker shows a close of 4.00 with zero volume on July 25, 2024, indicating limited trading activity. The broader Vietnamese gold market is influenced by global trends, domestic supply-demand dynamics, and regulatory policies. The current rally aligns with global safe-haven demand amid economic uncertainty.

Strategic Significance

For long-term investors, the rise in gold prices underscores the ongoing appeal of gold as a hedge against inflation and geopolitical risks. The move toward $5,000 per ounce, as suggested by analysts, could have implications for Vietnamese gold retailers and investors. However, the SJC ticker on UPCOM is not directly tied to gold trading; it is a construction company. Therefore, the direct investment thesis is limited to physical gold holdings or companies with gold retail exposure, such as SJC (the gold company), which is not publicly listed. Investors should consider the divergence between the physical gold market and the listed entity.

What to Watch

• Upcoming U.S. inflation data (CPI) for signals on Federal Reserve rate cuts.
• Movement in global spot gold toward the $4,500 and $5,000 levels.
• Domestic gold price adjustments by SJC and other retailers in response to global trends.
• Any regulatory changes in Vietnam’s gold market, such as import/export policies.
• Trading volume and price action for the SJC ticker on UPCOM, though it is not directly correlated with gold prices.