Gold price plunged after God of Wealth day

Gold prices plunged after February 14, when Valentine's day coincided with the God of Wealth day (source: goldprice.org)

In the morning of February 15, the price of gold was changing in Vietnam and the world in general.

One day after the God of Wealth day, the price of SIC gold was VND36.58/36.82 million ($1,590/1,600) per tael (buy/sell price). The selling price of SJC gold this morning continued to drop by VND253,000 ($11) compare to the day before.

Doji listed its gold buying price at VND36.65 million per tael ($1,593), increasing by VND100,000 ($4.35) compared to the day before, and selling price at VND37.15 million ($1,615), decreasing by VND350,000 ($15.22).

In the morning of February 15 (Vietnam time), the world spot price of gold stood at $1,312 per ounce.

Yesterday (February 15), gold stood 0.6 per cent higher ($7.5 per ounce) than in early 2018. The world price is converted from USD to VND at VND36.3 million ($1,578) per tael, excluding taxes and fees, about VND1 million ($43.48) lower per tael than domestic gold.

Opening the session on the US market last night, gold dropped sharply in New York as the dollar appreciated after positive signs in US-China trade negotiations. However, gold rose surged once again because the US announced that the retail index dropped to the lowest level in nine years while unemployment increased.

According to a report by the US Census Bureau, the US' retail trade fell by 1.2 per cent on-month in December 2018, following a revised 0.1 per cent growth in November and falling short of market expectations of 0.2 per cent gain. It was the steepest decline in trade since September 2009, as sales fell across almost all categories.

Meanwhile, data from the US Department of Labour showed that the number of unemployed people on last Saturday increased by 4,000 to 239,000.

These figures are expected to have a direct impact on the views of the Federal Reserve System (Fed), which is taking a cautious direction and reconsidering the plan to raise interest rates made in the past few years.

Previously, the Consumer Price Index for all urban consumers (CPI-U) was unchanged in the January seasonal adjustment round, the US Bureau of Labour statistics reported on February 13, 2019.

Earlier, the Fed pledged to be "patient" on interest rate adjustments as the world's No.1 economy may slow down.