Banks assist gold to hit new record

The domestic gold price yesterday hit an all-time high of VND41.32 million (US$2,004) per tael following increased purchases by a number of central banks on the global market and Europe’s worsening debt crisis.

The price on Kitco yesterday reached $1,674.60 per ounce (one tael is equal to 1.2 ounces), hitting its ninth record in 16 trading sessions and up 17 per cent so far this year.

Sai Gon Jewellery Co (SJC), Bao Tin Minh Chau, Agribank Gold and Jewellery Co (AJC), the Sacombank Jewellery Co (SBJ), the Phu Nhuan Jewellery Co (PNJ) and Doji quoted prices of VND41.20-41.32 million per tael, up VND1.17 million against the previous session.

The price dropped slightly late afternoon to finish at VND41.10-41.22 million per tael.

Dealers reported a quiet day’s trading yesterday, while customers monitored the fluctuating price.

“Today’s increase is just the beginning of a new up-trend,” said Nguyen Huu Dang, an analyst at AJC.

Dang expected the global price to push the $1,700 per ounce level soon, with the domestic price hovering around VND43 million per tael.

Tran Quoc Quynh, senior commentator at the Viet Nam Gold Traders Association, said that the major reason for the sharp increase on the domestic market was the dramatic global price surge.

On Tuesday, purchases by South Korea and Greece’s central bank, seen as a strong move to diversify their reserves away from the dollar and other beleaguered currencies, supported prices at elevated levels in trading in Asia and Europe.

Industry insiders also assumed that although the US debt ceiling increase was clinched, the US debt remained a concern for credit rating agencies, which would potentially prop up the price of the precious metal. — VNS

Tags: vietnam gold, Vietnam gold market, Vietnam gold prices