Gold price in Vietnam surged VND90,000 a tael (1.2 ounces) to VND21.95 million on September 8, as global gold futures hit US$1,000 an ounce for the first time in more than six months.
Most gold shops bought bullion at around VND21.85 million and sold at VND21.95 million, with trade difference extending to VND70,000-100,000 a tael from VND50,000.
Domestic gold price was fetching just VND100,000 a tael lower than global price. Jewelers were trying to adjust the prices faster than global price to boost trading.
Trading volume was reportedly fairly high.
Phu Nhuan Jewelry Hanoi Branch’s representative said that the company bought around 4,000 taels yesterday, double that of the previous day, with many customers even selling jewelry while selling volume just reached 1,000 taels.
Most investors, however, were still wary as they sold a limit amount, he said.
Customers started to buy heavily this morning, pushing buying volume equal to selling, as they expected the prices to advance further.
According to gold traders, since bullion was steady on high rates for a long time and tended to rise recently, people who have kept gold have had their concerns eased.
Meanwhile, trading on gold exchanges became muted as investors were waiting for the $1,000 mark to be broken today or tomorrow.
On the SBJ trading floor, nearly 187,000 taels changed hands at VND21.34 to VND21.45 million by 8:50am local time.
Globally, gold futures touched $1,000, as a weaker dollar and concern about accelerating inflation boosted the demand for the metal as a hedge against inflation. This year, the metal has already gained 13 percent.
Spot gold rose to $998.25 an ounce in New York.
In Asia, bullion for immediate delivery fluctuated between $996 and $997 an ounce.
Bullion prices were pushed up by speculation of major funds to diversify investment categories and limit risk as global equity markets make corrections. In addition, concerns about a long-term debasement of the dollar and the return of accelerating inflation have also backed the precious metal.
Metal futures topped a record high at $1,033.9 on March 17, 2008. Gold last traded above $1,000 on February 20.
The dollar exchange rate against the euro was just above $1.43.
Crude oil for September delivery slightly rose to $68.3 a barrel on the New York Mercantile Exchange.
The State Bank of Vietnam fixed the dollar exchange rate at VND16,978, VND2 higher than the previous day. State-owned Vietcombank traded the greenback at VND17,827.