Gold prices unexpectedly increase

Domestic gold prices suddenly shot up yesterday to nearly VND28.10 million (US$1,478) per tael thanks to an increase in the world gold price.

International investors are betting on another increase as demand for precious metals as investments is very safe and gold is still very strong.

At about 10am yesterday, the gold price offered by Sai Gon Gold and Silver Company (SJC) on the HCM City bourse stood at VND28 million per tael (purchase) and VND28.06 million per tael (sale), up VND50,000 per tael compared to last week ( 1 tael equals 1.2 troy ounces.)

The price of VND28 million per tael of gold returned late last week, concurrent with a significant increase in the metal price in New York last Friday. Last week was a turbulent week for the gold market; at times the price for the metal rose to VND28.35 million per tael, then suddenly dropped to VND27.9 million.

Sales in the market recorded a strong increase when the gold prices were high, but quickly returned to normal when the price went down. Gold traders said the general trend in the physical gold market was less vibrant than in the past.

Gold traded by the SBJ company at 8am yesterday was priced at VND28.03 million per tael (purchase) and VND28.07 million per tael (sale). In Ha Noi, the 10am price at Phu Quy SJC stood at VND28 million per tael (purchase) and VND28.06 million per tael (sale).

Domestic gold prices are far cheaper than the world price when taking conversion and other charges into account, running about VND400,000 per tael less than other markets. — VNS

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

Posted by VBN on Jun 15 2010. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry