The local gold market turned chaotic today, August 7, as the precious yellow metal kept rising by $15 per ounce on the world market to reach a seven-year high, according to Thanh Nien Online newspaper.
Major gold traders in the country made confusing moves given the global rise, with Doji Group in Hanoi raising the selling price of Saigon Jewellery Company (SJC) branded gold by VND1.55 million versus Tuesday to VND42.5 million per tael. One tael is equal to 1.2 troy ounces.
However, it hiked the buying price by only VND100,000 to VND40.6 million per tael. For gold jewellery, Doji quoted the buying and selling price at VND41.85 million and VND42.75 million per tael, respectively.
Meanwhile, SJC and Phu Nhuan Jewellery Company, another large gold firm in HCM City, did not quote their gold prices. Other firms in the city raised the metal’s prices to some VND40.9 million per tael for buying and VND41.1 million per tael for selling.
Global gold today stood at $1,479 per ounce, soaring by $50, or 3.5 percent, against the previous session. Investors worldwide continued seeking to acquire gold as a safe haven amid escalating global uncertainties, such as the trade war between the United States and China and tensions between Tehran and Washington.
Stock markets across the world have also slumped. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, have expanded by 1.76 tonnes to 836.9 tonnes.
Besides this, investors have flocked to hold US dollars, pushing up the USD Index by 0.2 point to 97.48. Having dropped to an 11-year low, the Chinese yuan today bounced back, staying at 7.022 per US dollar compared with 7.04 previously.
Regarding the local forex market, some officials from the State Bank of Vietnam and local banks said the greenback usually turns firmer in the morning before cooling down in the afternoon, driven by concerns over US-China tensions. China is facing significant disadvantages as Washington has designated Beijing a currency manipulator.
According to a representative of the central bank, the forex and gold market will be stabilised by the strong foreign reserves in the country. Meanwhile, the macroeconomy and inflation is well under control by the government.
Meanwhile, the nation’s foreign reserves have reached $68 billion, whereas over $10.7 billion worth of foreign direct investment capital was disbursed between January and July this year. Further, foreigners still net bought over VND2.4 trillion on the local stock market.
Given the current profuse foreign currency supplies, the central bank has enough tools to regulate and control the forex market, the official remarked.
