Gold price unexpectedly jumps to 31.2 million per tael

Gold companies this morning started a new business day with the opening price at 31.08 million dong per tael. However, the price soared to 31.23 million dong per tael just two hours later. On the black market, gold shops did not post prices, because the prices increased every minute.

Nguyen Thi Cuc, Deputy General Director of Phu Nhuan Jewellery Company (PNJ), said that the domestic gold price increased by 620,000 dong per tael over yesterday, because the gold price increased sharply in the world on September 28 night, climbing to the all-time record high at 1309.8 per ounce.

A tael is equal to 1.2 ounces.

If calculating the gold prices in accordance with the dong/dollar exchange rate quoted by commercial banks, the world’s price would be 30.77 million dong per tael, or 460,000 dong per tael higher than the domestic price.

Explaining the big gap between the domestic and world’s prices, analysts said they can see signs of short supply, since enterprises had exported too much gold before.

The domestic gold price has always been higher than the world’s price since the beginning of the week.

Besides, the sharp domestic price increases have also been attributed to the fact that enterprises are waiting for the final decision from the State Bank of Vietnam on whether to allow to import gold.

A lot of enterprises have asked for the central bank’s permission to import gold, but they have not got reply so far.

According to local newspaper Tuoi tre, on September 29 morning, the gold prices on the market changed every minute. Especially, a lot of gold shops did not post sale and purchase prices. Every time, when customers came to make transactions, shops’ owners called suppliers to ask about prices.

The prices informed by shops’ owners were just the prices for reference. Meanwhile, the prices were only fixed at the time when buyers paid money. Explaining this, shops’ owners said that it was because the gold price fluctuated so heavily.

The prices quoted by gold shops this morning were quite different, with the big gap of up to 100,000 dong per tael.

Goldsmith companies also reportedly changed their quoted prices regularly. The Saigon Jewellery Company (SJC), for example, changed the prices 10 times this morning.

The dollar price on the black market has increased by 110 dong per dollar over the last three days, following the sharp domestic gold price increases.

A dollar was sold at 19,610 dong on September 29 morning.

Meanwhile, the dollar price quoted by commercial banks did not see any changes.

The gold price in the world market on September 29, for the first time, exceeded the $1300 per tael threshold, climbing to 1309.8 per ounce. The dollar sharp depreciation to the 8-month deepest low has been cited as the main reason behind the gold price increases. SPDR Gold Trust yesterday purchased 5167 tons of gold, raising the gold reserves to 1,305.67 tons.

Analysts believe that if the world’s price continues rising, the domestic price will increase sharply. According to the jewellery company under Sacombank, investors have become cautious with the recent gold price fluctuations, therefore, there are few transactions on the market.-Tuoi tre, TBKTVN

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