Local Gold Price Continues to Rise

Despite a remarkable gold sale made by individual investors, strong purchasing power of local commercial banks heats up the market.(Photo: TK)

The domestic gold price this morning has risen on the back of rising global rates and the interest rate cut from investment funds.

Gold price of the Ho Chi Minh City-based leading gold trader Saigon Jewelry Company (SJC) this morning went up by VND70-80.000 a tael to VND13.23-13.25 million.

Despite a remarkable gold sale made by individual investors, strong purchasing power of many commercial banks in Viet Nam this morning has heated up the market.

In the global market, gold price also fluctuated strongly and jumped to the highest price over the past two weeks at US$689 an ounce, increasing by US$10 an ounce from the last weekend trading session. Currently, the domestic gold price was VND80-100,000 a tael, lower than the world price.

According to experts, possible job cuts in the US and a lower dollar have boosted sentiment in the gold market. The US Federal Reserve is expected to announce its interest rate decision on May 9 and a cut could further  weaken the dollar against the other major currencies.

Market analysts said key attributors to gold price rises, including the geo-political tensions, high energy prices and investment demand will continue in the near future. Gold price will possibly end up averaging around US$753 for 2007, they added.

Recently, the Vietnam Gold Trading Association has asked the central bank to set up a gold bank to keep the country’s gold market in tune with the international bullion business. As demanded by the association, the bank would provide support and consultancy for local gold businesses.

By H.K – Translated by Trong Khuong

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