Domestic gold price hits seven month high

The domestic gold price rose by 1.26 per cent yesterday, June 21, against last Friday to reach a seven-month high of VND28.67 million (US$1,513) per tael, driven by a sharp surge in the global price to an all-time high on the previous evening.

Shops in both Ha Noi and HCM City, including those of Sai Gon Jewellery Co, Sacombank, Bao Tin Minh Chau Jewellery Co, Agribank Jewellery Co, and Phu Nhuan Jewellery Co, quoted buy/sell prices at VND28.59-28.67 million per tael yesterday, June 21, up about VND360,000 from Friday’s price. A tael equals to 1.2 troy ounces.

Market watchers agreed that the increase was mainly driven by the global price which had been boosted by the European debt crisis, causing investors to flock to the precious metal.

The record high in the domestic market of VND29.3 million per tael was reached on November 11 last year.

“My experience suggests that the domestic price may continue to rise and surpass the record if the global price remains on the current upward trend,” a source close to Viet Nam News from the Viet Nam National Gold, Silver and Gemstones Corporation said.

Given positive forecasts over the price, sellers who decided to cash in outnumbered buyers.

Global gold rose to a record high at $1,264.9 an ounce in Europe yesterday as a slip in the US dollar added impetus to the metal’s existing rally on the back of rising concerns over financial and sovereign debt risk.

Gold prices have risen more than 15 per cent this year as rising concerns over sovereign debt levels in Europe and the prospect of further financial market instability boosted interest in the precious metal as a haven from risk.

Despite the long-running inverse relationship with gold, one US dollar was being traded stably at around VND18,960-18,990 during the up and down of the gold price, thanks to measures taken by the central bank to keep the exchange rate stable to support the current economic recovery.

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