Domestic gold prices surge

The domestic gold price yesterday leaped 2.13 per cent to VND27.3 million (US$1,436) per tael, following a sharp surge in the global price to a five-month high of $1,211 per ounce the previous evening. [One tael equals to 1.2 troy ounces.]

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 Nhuaân Jewellery Co, quoted buy/sell prices at VND27.22-27.30 million per tael yesterday, up over VND600,000 from Thursday’s price.

“The increase is mainly driven by global movement,” Tran Quoc Quynh, a senior gold expert said. “The global price may continue to rise as the European debt crisis widens. Many investors regard gold as a safe haven.”

The domestic gold price yesterday saw a big change after the price had remained at stable level of VND26-26.5 million for the past five months and gold dealers reported an increase in trading.

“Many people bought gold at about VND25.98-26.2 million and now they are looking to cash in,” a dealer from Bao Tin Minh Chau’s shop on Tran Nhan Tong street said.

A source close to Viet Nam News revealed a number of enterprises had taken the opportunity to export gold because the domestic price is about VND300,000 lower per tael than the global price.

A representative from the Viet Nam National Gold, Silver and Gemstones Corporation predicted that: “Gold prices will continue to follow an upward trend and may even set record highs at the end of June or early July.”

Global gold rose to a record $1,226 in December last year as declines in the value of the dollar spurred demand for the metal as an alternative investment. The dollar was little changed against the euro yesterday after reaching a 14-month high on Wednesday.

On the black market in Ha Noi yesterday, 1 US dollar was being traded for VND19,000, down VND100 per dollar. — VNS

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