Gold price rise triggers selling spree

Domestic gold prices topped VND28.7 million yesterday. As a result many small investors rushed to sell gold. Meanwhile, commercial banks have entered the race to increase the price of US dollar.

Two days after the sudden increase in the value of the dollar, the domestic gold market also increased in value. Early yesterday morning, the gold price offered by Saigon Gold and Silver Company (SJC) on the HCM City bourse, stood at between VND28.65 million ($1,484) and 28.71 million ($1,487) per tael, up from VND150,000 to VND170,000 compared to Wednesday afternoon. The SJC gold price continued to spiral with gold prices reaching VND28.75 million ($1,489), while other jewellery shops in HCM City offered gold at around VND28.63 million per tael (purchase) and VND28.75 million per tael (sale).

In Ha Noi, gold traded by SJC agents at 11am stood at VND28.78 million, VND80,000 higher than the purchasing price. In Ha Noi, small traders rushed to sell their gold yesterday morning. The number of gold traders increased by 60 per cent compared to previous weeks, a representative of Bao Tin Minh Chau said.

Xuan Lan, a small trader said she decided to sell her gold yesterday despite predictions that the gold market would continue to see higher prices.

A Phu Nhuan Jewellery Company representative said as of 11am yesterday, his company had purchased 3,000 taels from customers nationwide, up sharply compared with the dismal days of last week.

The increased gold price was attributed to the increased value of the dollar on the foreign currency markets. However, the foreign currency market had gradually stabilised, and the listed buying and selling prices of the US dollar had already hit ceiling prices. Therefore, gold prices were likely find it difficult to increase further. — VNS

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