Domestic gold price rises on global spike

The domestic gold price gained about VND300,000 per tael yesterday, December 2, to reach nearly VND28.8 million (US$1,515) per tael, buoyed by the meteoric rise of gold on global markets overnight to $1200 per ounce [one tael is equal to 1.2 ounces].

Gold dealers in Ha Noi nevertheless reported no strong local reaction to the spike in prices, noting that investors seemed to be rather cautious following last month’s speculative fever.

Sai Gon Jewelry’s branch in Ha Not listed buy/sell prices at VND28.65-28.85 million per tael, while their HCM City office listed prices of VND28.67.28.77 million.

Bao Tin Minh Chau Jewelry Co was trading its “Dragon” gold leaf at VND28.61-28.75 million per tael, while “PNJ-DAB” gold leaf at Phu Nhuan Jewelry Co was being traded at about VND28.70-28.78 million per tael.

Sacombank was listing gold prices of VND28.65-28.70 million per tael, while Agribank Jewelry Co was selling its “AAA” gold leaf at VND28.40 million.

Orders on gold exchanges in Ha Noi, meanwhile, were being matched at about VND26.9-27.00 million per tael.

Tran Quoc Quynh, a senior expert with the Viet Nam Gold Trading Association, said that if the global price continued rising, domestic gold prices would also increase.

Some market watchers thought gold might again reach the record high of VND29.3 million it set earlier last month.

The weakening of the US dollar against a number of major world currencies has elevated demand for gold, an asset viewed as a hedge against inflation and political risk.

Commercial banks yesterday were quoting the US dollar at VND18,486.

VietNamNet/Viet Nam News

Tags: Vietnam gold market, Vietnam gold price