Local Gold Prices Increase Following Global Trend

Price reduction last week presented a good opportunity for traders to buy gold, with the number of traders buying gold increasing during the past two days. (Photo: TK)

According to a representative of the Ho Chi Minh City-based gold trader Saigon Jewelry Company, the domestic gold price has risen again to VND12.69 million (roughly US$792) per tael this morning, an increase of VND20,000 over yesterday.

In HCM City, the buying price for gold stands at VND12.62 million per tael, while the selling price is VND12,69 million ($788), a reduction of VND20,000 over yesterday.

Meanwhile, in Ha Noi, the buying price is VND12.47 million (US$779), while the selling price is VND12.63 million (US$789).

According to the Vice Chairman of the Viet Nam Gold Association Nguyen Thanh Truc, domestic gold price fluctuations depend on the rise and fall of gold prices on the global market.

Last week, global market prices rose and fell substantially. Early in the week the price hit a record US$689 per ounce. However, on February 28, the price quickly fell to US$660 per ounce before climbing back to US$674 an ounce the same day. The fluctuations continued until March 3, when the price fell to US$640 per ounce, and then climbed slightly to US$641.2 per ounce yesterday.

According to experts, drops in the price of gold were due to the crisis in China’s securities market spreading to the US and several Asian countries.

In addition, at the close of trading last week, many investors sold their gold stocks as many securities funds faced deficits and financial groups struggled to cope with a lack of capital for business operations, according to analysts. The complicated changes in the global market led to the strong price reductions in Viet Nam.

According to the Bao Tin Minh Chau Co however, the price reduction presented a good opportunity for stock market traders to buy gold, with the number of traders buying gold increasing during the past two days.

Source: SGGP, VNS – Compiled by Trong Khuong

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