Domestic gold price soared to surpass VND49 million (US$2,100) per tael (1.2 ounce) this morning when the global prices of the yellow metal climbed to a multi-year high.
On the morning of May 18, the Saigon Gold and Jewellery Company listed each tael of SJC gold at VND48.67 million VND49.15 million (buying-selling), an increase of VND450,000 compared to the rates last week.
Phu Quy Group also increased VND450,000 per tael to VND48.65 million VND49.05 million (buying-selling).
At the same time, the gold price grew sharply in the recent four sessions. Currently, the spot gold price rose to $1,759 per ounce, while the price of gold delivered in June rose to $1,768 per ounce.
Converting to the local dong with the current exchange rate each tael of gold in the global market was VND49.8 million, VND800,000 higher than the domestic gold price.
A majority of Kitco’s survey participants forecast gold prices will rise this week. Seventy-one per cent Wall Street voters, who are gold experts, said the prices will go up, while 69 per cent of 1,088 cast in an online Main Street poll also voted for the same trend.
Kevin Grady, president of Phoenix Futures and Options LLC told Kitco.com: “We are starting to see equities slow at this point. The massive global stimulus packages that the central banks have undertaken should propel gold to higher levels. This low interest-rate environment will be here for a while, also bullish for gold.”
Other experts on Kitco said that there were three main factors driving the gold price this week including central banks’ unlimited quantitative easing efforts, increasingly gloomy US economic data, and the tensions in US-China trade relations that added to the concern about the severe economic downturn from the Covid-19 pandemic.
According to Commerzbank analysts, there was no surprise that gold ETFs recorded a wave of buying. If speculators also increase bets on gold, gold will rise rapidly to $1,800 per ounce.
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