Roundup: Vietnam’s gold prices soar to 10-year high

Vietnam’s average gold prices closed at 39.40 million Vietnamese dong (VND) (1,916 U.S. dollars)a tael, equivalent to 1.2 ounce on Friday, posting a decrease of 120,000 VND (5.83 U.S. dollars) a tael against the previous trading session.
In the capital city Hanoi, Bao Tin Minh Chau Company quoted buying gold price at 39.30 million VND (1,911 U.S. dollars) a tael on Friday and selling gold price at 39.40 million VND (1,916 U.S. dollars) a tael.

In the country’s southern Ho Chi Minh City, Sacombank Company quoted buying gold price at 39.34 million VND (1,913 U.S. dollars) a tael and selling gold price at 39.40 million VND (1,916 U.S. dollars) a tael on Friday, a decrease of 100,000 VND (4.86 U.S. dollars) against previous trading session.

During the week, domestic gold price increased 450,000 VND (21. 88 U.S. dollars) per tael against last Friday’s trading session. It made the ever high record of 39.70 million VND (1,930 U.S. dollars) a tael along with the global new record of 1,610.7 U.S. dollars per ounce on Tuesday, and the lowest level of 39.25 million VND (1,909 U.S. dollars) a tael on Monday.

Domestic gold prices soared to 10-year high along with the global trend due to worries about the public debt crisis in European countries and standstill in solutions of raising the debt ceiling in the United States, that made investors rushed to gold. Up to July 17, the SPRD Gold Trust accumulated more than 1,249 tons of gold to its reserves, up 1.1 percent and the biggest amount ever since the beginning of the year.

Insiders forecast global gold price would reach 1,700 U.S. dollars per ounce in a few months, and up to 2,000 U.S. dollars in the next nine months.

Increasing global gold price had impacts to domestic gold transactions. However domestic gold price is still 450,000 VND (21. 88 U.S. dollars) per tael lower than the global price. Many gold trading enterprises took this advantage to export products in forms of jewelries to earn good profits. To solve the problem, the government is considering a new regulation on gold exports, under which products containing at least 80 percent of gold (against the previous 90 percent) will be taxed with 10 percent.

Meanwhile, the inter-bank rate of the State Bank of Vietnam remained unchanged at 20,608 VND/USD on Friday, the lowest level since February, which narrowed the gap between the official and the free market purchase, proving the government’s effective measures to regain control of foreign exchange market and ease the pressure on the value of the Vietnamese dong.

The USD price at commercial banks is listed at 20,570 VND per one dollar on buying price, and 20,630 VND on selling price on Friday, a decrease of 40 VND against the previous trading day. – Xinhua

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