Domestic gold price breaks record again

Gold hit its highest price on the domestic market yesterday morning at VND39.35 million (US$1,910) per tael, mostly driven by the global spot gold price reaching a record high after 11 straight days of gains due to persistent worries about the euro zone debt crisis.

Spot gold rose to an all-time peak on the international market of $1,599.20 an ounce, up 1 per cent from the previous close.

Sai Gon Jewellery, Bao Tin Minh Chau, Agribank Gold and the Jewellery Co, the Sacombank Jewellery Co, the Phu Nhuan Jewellery Co and Doji quoted prices of VND39.15-39.22 million per tael (one tael is equal to 1.2oz).

The gold price was up VND1.2 million per tael, or 3.15 per cent, against last Monday which is still VND450,000 lower than global price.

Gold dealers, who predicted the domestic gold price would keep surging this week, reported sellers outnumbered buyers. Both retail and institutional investors took profits on the high price.

However, gold shop owners reported late yesterday that demand had reduced.

Thuy, a gold shop assistant in Ha Noi’s Doji centre said: “I think after big sales last week people seem more hesitant and prefer to wait and see. Some big investors are talking of a global resistance level at $1,600 per ounce.”

Doji’s total trading volume reached 3,000 taels, of which the volume of gold sold was 300 taels.

Thanh, an individual investor, who sold gold bullion last week at VND39 million per tael to SJC, yesterday was cautious.

“The current price is rather high. I suppose it will adjust a little before creating a new record,” Thanh said.

Sai Gon Jewellery’s deputy head of business Nguyen Cong Tuong said yesterday’s gold trading was more balanced.

“Sai Gon Jewellery bought 3,500 taels while selling 3,000 taels in the morning,” he said.

Some major dealers reported yesterday that a buy sentiment was being expressed by some groups who expected the price to go higher. — VNS

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