Gold traded at an all-time high of VND23 million a tael (1.2 ounces) on October 7 as globally the metal jumped to a record on speculation that the US dollar would extend its decline and inflation accelerate.
Jewelers increased prices by VND500,000 a tael from the previous day and extended the gap between selling and buying prices to VND120,000-130,000 to take advantage of the heavy selling.
Trading on the bullion market too was fairly heavy with most people selling to take profits.
Hanoi-based gold dealer Bao Tin Minh Chau said its buying volume was six or seven times higher than normal.
Some customers even sold jewelry, it said.
Saigon Jewelry’s Hanoi Branch said it bought 400 taels and sold 300 taels.
Trading on gold exchanges was also high, with 398,430 taels changing hands at VND22.03 million to VND22.57 million on the SBJ trading floor by 4pm local time.
Globally, the metal soared as the greenback slid, with investors seeking the metal as a safe haven.
Gold for immediate delivery rose as much as $24.6 an ounce, or 2.4 percent, to $1,042.8. Earlier, it had touched $1,044.8.
Gold futures for December settlement gained $21.90, or 2.2 percent, to $1,039.70. In the trading sessions, it sometimes climbed to $1,045 an ounce, topping the previous record of $1,033.9 an ounce in March 2008.
Gold futures soared 18 percent this year in New York.
Holdings at SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, increased by 2.44 metric tons to 1,100.51 metric tons, the firm’s website showed.
The US Dollar Index, a six currency gauge of the greenback’s strength, fell as much as 0.7 percent despite Saudi Arabia and Russia’s denial of efforts to replace the greenback with a basket of currencies for oil trading.
The dollar weakened after Australia unexpectedly raised the interest rate to 3.25 percent on signs of strength in the economy.
Crude oil for November delivery advanced $0.47 a barrel, 0.7 percent, to close at $70.88 a barrel on the New York Mercantile Exchange.
Prices advanced after the American Petroleum Institute reported that stockpiles fell 254,000 barrels to 339.4 million last week.