Gold price nearly hits 28 million dong per tael threshold

The domestic gold price has continued to steadily rise on the morning of June 2, with the sale price quoted by major gold trading companies reaching 27.9 million dong per tael.

In HCM City, the Saigon Jewellery Company quoted the SJC gold price at 9 am at 27.84-27.90 dong per tael (purchase and sale), an increase of 60,000 dong per tael over June 1, 2010.

The bar gold with Phuong Hoang PNJ-DAB brand of Phu Nhuan Jewellery Company was quoted at 27.84-27.88 million dong per tael at 9 am this morning.

In Hanoi, SJC gold quoted by Phu Quy Company at the same time was 27.76-27.84 million dong per tael (purchase and sale). The Thang Long Dragon brand of Bao Tin Minh Chau Company has he prices of 27.80-27.90 million dong per tael, increasing by 60,000 and 70,000 dong per tael over yesterday morning.

The world’s gold price remains at a high level thanks to high demand. The world’s gold price nearly hit $1230 per ounce last night (Hanoi time), after warnings from the European Central bank ECB that the banking sector may face big losses.

The Tien phong newspaper quoted analyst Stephen Platt of Archer Financial in Chicago, U.S., who said that investors still continue storing up gold due to fears about the instability of the euro currency.

SPDR GoldTrust on June 1 purchased 0.304 more tonnes of gold, raising the total volume of gold the organization holds to 1,268.234 tonnes.

According to Tuoi tre newspaper, after the gold price increased by 160,000 dong per tael on June 1, 2010 to 27.88 million dong per tael, people have rushed to sell gold. The owner of a gold shop on Le Thanh Ton street in District 1 in HCM City said that people are rushing to sell gold at this moment, and hope to purchase gold later, when the prices go down.

The Vietnamese gold market has become quiet again, thanks to jewellery companies that now do not want to buy gold to make jewelry products for export any more due to increased prices. The world’s gold price is still higher than the domestic price, but the difference is not large enough to prompt gold trading companies to resume gold jewellery products.

The interbank exchange rate announced by the State bank of Vietnam for June 2 is 18,554 dong per dollar. Meanwhile, the prices quoted by commercial banks are at 18,960-19,000 dong per dollar (purchase and sale).

The dollar price on the black market sold on June 1 was even lower than the exchange rates quoted by commercial banks, which helps explain why many people who want to purchase dollars to pay for tours and overseas study bought dollars on the black market instead of the official market.

Tuoi tre

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