Global gold price higher 600,000dong/oz over local

The prices of many domestic gold brands on May 18 morning were not adjusted consistently with the unpredictable movements of international gold market while the US dollar price of free market as well as banks is going down.

In the start of this week, Saigon Jewellery Co announced that its SJC gold bar price was unchanged from last weekend at 28.15 million dong per tael. But the purchase price of this firm surged by 40,000 dong to 28.09 million dong/tael.

At the same time, some SJC gold shops in HCM City ranged between 28.05 and 28.15 million dong/tael, representing a gap of 100,000 dong/tael between selling and buying prices.

On Monday May 18, Sacombank SBJ listed gold at 28.05-28.10 million dong/tael, down 20,000 dong slightly in both selling and buying prices as compared with May 15.

During last week, the local gold price peaked over 28.20 million dong/tael whereby people were rush to sell gold. Although the purchase volume of enterprises did not increase sharply, this was the overheated time of the gold market after many previous months of gloomy movements.

US dollar price of the free market, after continuously surged highly, yesterday continued decelerating and going around a sustainable level. Particularly, in Hanoi, US dollar was sold at 19,040 dong and bought at 19,000 dong. In HCM City, the prices were common at 19,000-19,060 dong/US dollar, cheaper 80-120 dong/US dollar against May 13.

Listed US dollar price of commercial banks now dips 10 dong from the previous trading session. On May 18, Vietcombank announced to trade US dollar at 18,980-19,040 dong. Eximbank’s selling price was lower five dong than Vietcombank’s.

Reportedly, the global gold market has come through up and down session, then broke the highest record of the history of $1,249.40 per ounce and slipped to $1,217 per ounce. Finally, the price closed the week at $1,231.40 an ounce.

On this Tuesday, precious metal price in Asian market surged again. At 9:20am (Hanoi time), per tael of gold was traded at $1,235.70, up $4.3 compared with the opening price. Converting into dong, the forex rate stood at 19,040 dong per US dollar and each ounce of gold of the international market was valued at 28.64 million dong (including import tariff). Thus, the global gold price is more expensive 600,000 dong/ounce over the domestic price.

Specialists said that investors are racing to buy gold to avoid the financial storm that could expand widely in Europe. SPDR Gold Trust Fund’s gold purchase reached 1209,499 tonnes.

George Gero, vice president of global futures at RBC Capital Markets, argued that most big investors are gathering capital to buy gold as the most safe investment channel in the current crisis context, but in the recent profit-taking phase, a huge volume of precious metal was sold out to increase cash holding.

VNexpress

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