Gold prices test new highs as global uncertainties grow

The domestic gold price yesterday broke another record, with major gold dealers all quoting prices of VND47 million to VND47.5 million (US$2,279) per tael, as global prices soared, fueled by growing eurozone debt fears and deepening signs of a second US recession.

Gold stands at a whopping VND7 million higher than its mark earlier this month.

As the US reported a sharp drop in factory activity in its US Mid-Atlantic region and an unexpected slump in used home sales – and markets worried about the health of European banks – the global gold price hit a record of $1,864.14 per ounce, about VND500,000 below the domestic price. (One tael is equal to 1.2 ounces.)

Many gold dealers adjusted their prices about 10 times during the day, with the distance between buy and sell prices widening to VND450,000 per tael from VND200,000 on Thursday, reflecting the growing risks in gold trading.

Investors and speculators in both Ha Noi and HCM City flocked to the gold shops yesterday, some intending to buy but some others just to come and watch prices.

The trend wasn’t yet clear, commented Sai Gon Jewelry Co general director Nguyen Ngoc Que Chi. “The sudden increase encourages people to worry about a sudden decline,” Chi said.

The State Bank of Viet Nam was keeping close watch on price changes and was ready to apply measures to prevent speculation similar to what occurred last week, said the deputy director of the central bank’s HCM City branch, Nguyen Hoang Minh.

Last Tuesday, the State Bank allowed the importation of five tonnes of gold to meet the sudden strong demand and cool the domestic price. — VNS

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