Gold puts a spring in its step

The domestic price of gold suddenly surged by 0.96 per cent yesterday to VND28.34 million (US$1,499) per tael (one tael equalling 1.2 troy ounces) , following a sharp leap in the global gold price to a near record high of $1,251 per ounce.

Shops in both Ha Noi and HCM City quoted buy/sell prices at between VND28.26-28.34 million per tael yesterday, up VND200,000 on Thursday’s price.

“After weeks people kept waiting and seeing, today many people are selling gold to cash in,” said a dealer from Bao Tin Minh Chau shop on Tran Nhan Tong Street.

The domestic gold price yesterday reached the highest level since the beginning of the year, with a big change after the price hovered around VND28 million and gold dealers reported an increase in trading.

A representative from the Viet Nam National Gold, Silver and Gemstones Corporation predicted: “Right after the sudden surge, gold price may go up and down for some days. Gold prices then may continue to follow an upward trend and even set record highs by early July.”

Tran Quoc Quynh, a senior gold expert, predicted the global price might continue to rise if confidence about the European debt crisis is not restored. Many investors regard gold as a safe alternative to volatile currencies.

The price of gold on the global market is up by 14 per cent this year, outperforming stocks, bonds and other commodities, as investors seek to safeguard their wealth against the crisis in Greece and other European countries struggling to repay sovereign debt.

Spot gold was bid at $1,243 an ounce late afternoon yesterday, against $1,243 New York late Thursday. At the same time, US gold futures for August delivery eased $3.20 to $1,245.50.

Prices reached $1,250.65 on Thursday, close to the record $1,251.20 they hit last week. — VNS

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