Gold prices topped VND26.6 million a tael in Vietnam on November 9 as global prices climbed to a record level on the back of the dollar’s tumble, boosting demand for the metal as a hedge.
It was bought at VND26.4 million and sold at VND26.6 million, an increase of VND850,000 a tael from the previous day. A tael equals 37.5 grams.
Gold has soared VND2.7 million this month.
Trading volumes were high with a lot of buying interest despite the high prices.
As global prices edged up, investors stopped selling and resorted to buying, a representative of Hanoi-based gold dealer Bao Tin Minh Chau said.
Ton The Vinh Quyen, sales manager at Sacombank Jewelry, said besides a supply shortfall, gold also rose because of bear speculators’ short covering.
Many borrowed gold and sold it when the prices were VND24-25 million. They waited for the prices to drop to buy back gold and repay the loan but since they continued to surge they had to buy gold to cut their losses, Mr. Quyen explained.
Trading volume on the SBJ trading floor was fairly low with only around 136,000 taels changing hands at around VND23.82 million.
Globally, gold rose to a record high as the dollar slumped, prompting investors to buy bullion as an alternative asset.
After breaking through the $1,100 resistance level, spot gold advanced $11 an ounce to $1,109 an ounce in New York.
The US Dollar Index, a six currency gauge of the greenback’s value, tumbled as the Federal Reserve kept interest rates near zero.
The dollar fell to nearly $1.5 to a euro.