Postponed gold auction: Are businesses not interested or are they "waiting and waiting"?

This information has raised public opinion about whether or not there is a situation where businesses are indifferent and not "interested" in the gold auction policy, although this decision is expected to help increase supply and cool down the market, immediately handling the situation of the price gap between domestic gold bar prices and international gold prices. Along with that, the participation of the highest management agency, the State Bank, in regulating the gold market is being evaluated as a solution to manage the market in a stable direction, gradually eliminating the gold speculation mentality among the people.

On Tran Nhan Tong Street, considered one of the busiest streets in Hanoi, with a large concentration of gold, silver and gemstone shops of most reputable businesses in this field such as Bao Tin Minh Chau, Bao Minh, DOJI, Phu Quy, Nhat Quang..., gold transactions were quieter than last week. According to the explanation of transaction staff, partly because today is the first day of the week, but mainly because the gold price is tending to cool down, the psychology of hoarding assets such as gold bars and gold rings among people is also somewhat affected when the State advocates bidding and selling gold bars to stabilize the market.

Economist Nguyen Tri Hieu, who always closely follows all developments of the financial market, the domestic and international investment market; at the same time, always has assessments, comments and predictions quite close to the market, shares the view that the phenomenon of postponing the gold auction this morning and moving it to tomorrow morning from the State Bank is an unusual development; especially at a time when the market is bustling as reflected by the media recently. The reason why there are too few bidders and deposits is also a factor worth paying attention to and reflects the waiting and listening movement among the people. Basically, although it is unusual, it is completely understandable because gold is always a sensitive market when there are fluctuations. Businesses waiting and listening does not mean they are not interested, if anything, they are "slowing down" to monitor the developments and reactions of the majority of the market. It is very possible that many businesses and people are expecting that after the gold auction, the gold market will "fall in price" even lower. If they are speculators, they may also be waiting for the rain to come so they can get ready to go catch it. The no-rush mentality is common in this context.

From a longer perspective, Expert Nguyen Tri Hieu analyzed that it is clear that the gold market has a very large speculative element. There is even a situation of "inflating" the gold price. This is playing an important role leading to unusual developments in product supply and demand as in the recent past. In addition, we must also mention the factors affecting the connection of the world gold market. In recent days, the world gold price has tended to reverse and decrease a bit, which may also be the reason why many people are continuing to wait. Not only businesses participating in gold auctions, but also people buying and storing may be in this mentality and it is understandable that they delay the decision to buy gold at this time. Any business needs stability, a stable market and a stable mentality to be able to offer a suitable price when deciding to buy gold. No one wants to buy "at a loss" at this time.

Predicting the next move of the State Bank, expert Nguyen Tri Hieu commented that the management agency can postpone the auction many times to a time that is suitable for the market developments, not just to tomorrow. However, according to this expert, the chance of successfully organizing the gold auction tomorrow morning is very high and it is likely that many businesses will win the gold bid.

Along with that, the price of gold bars, even gold rings, may continue to fall. But how much and how long they will fall are unpredictable factors and depend largely on when speculators choose to "release" their goods for sale; as well as whether the State will stop bidding for gold or not. However, one thing is certain, the price of gold will still fluctuate due to high risks such as geopolitical conflicts and the war taking place in Ukraine or the election in the US. The re-election of the US President or vice versa, leading to the monetary policies of the US Federal Reserve (Fed), can completely reverse all speculations. That is the risk of pushing the price of gold up, at any time.