Domestic gold price hits all-time high

The domestic gold price yesterday scored a lifetime high of VND39.07 million (US$1,895) per tael, driven by a dramatic surge on the back of euro debt woes.

Major gold dealers such as Sai Gon Jewellery (SJC), Bao Tin Minh Chau (BTMC), Agribank Gold and the Jewellery Co (AJC), the Sacombank Jewellery Co (SBJ), the Phu Nhuaân Jewellery Co (PNJ) and Doji quoted purchase/sales prices of VND38.9-39.07 million per tael (one tael equal to 1.2 ounces).

Yesterday’s price was VND1 million higher than that on Monday, gold dealers reporting heavy trading with sellers outweighing buyers. The gold sales volume was five to seven times higher than the gold purchase volume yesterday.

Big dealers such as SJC, Doji, BTMC and AJC bought around 1,500-4,000 taels from clients during morning trading yesterday and on Wednesday.

“The consecutive increase of domestic gold prices during the last three days, as well as the new record high of today, have been driven by global gold prices,” General Director of the Bao Tin Minh Chau Co Vu Minh Chau told Viet Nam News.

Spot gold also managed to hit a record high of $1,589.56, buoyed by a sharp drop in the dollar after Moody’s warned that the US might lose its top credit rating, the possibility of more Federal Reserve stimulus and Europe’s deepening debt crisis. The global gold price has increased by 12 per cent since the start of the year.

“The Government’s decision to allow people to trade gold bullion is making the market more confident,” Chau said, adding that at such high prices, only a small group could still buy in.

Nguyen Huu Dang, an AJC official, told Viet Nam News that, although the domestic gold price was still VND400,000 lower than the global price, people viewed the current price as really profitable, many switching from gold to bank deposits in order to enjoy high interest rates.

Late yesterday, while the domestic price slid to VND38.93-39.01 million per tael on the back of thinning trade, the global price on Kitco reached a new high of $1,592.40 per ounce.

Insider experts have predicted that the domestic gold price would keep increasing, which is likely to refresh record short-term highs, global gold’s immediate target set at $1,600.

With such a busy gold market, the US dollar/VN dong exchange rate remained stable and unchanged at VND20,550-20,610 per dollar. — VNS

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