World gold prices continued to rise over the weekend causing a spike in the cost of domestic gold.
On November 21, domestic gold was officially traded at VND27.58 million per tael, an increase of VND780,000 per tael compared with last weekend, while world gold prices climbed to US$1,152 per ounce (1.2 taels), an increase of $32 per ounce.
The domestic price is now around VND1 million per tael higher than the global price (1USD = VND19,200).
In Hanoi, the Saigon Jewelry Holding Company (SJC) on November 21 quoted gold at VND27.6 million per tael, an increase of VND150,000 per tael compared to the previous day.
In Ho Chi Minh City, the Phu Quy Jewelry Company (PNJ) at Dong A Bank quoted gold buying at VND27.48 million per tael and selling at VND27.58 million per tael.
At the Sacombank gold trading floor, SBJ gold stood at a purchasing price of VND27.6 million per tael and a selling price of VND27.65 million per tael.
According to gold businesses, although prices have seen an increase, gold trading this week was much lower than last week.
One of the reasons for the increase in domestic gold prices is due to the Russian Central Bank adding 15.5 tons of gold (500,000 oz) to its reserves in October, making Russia the world’s 8th largest in terms of gold reserves.
Many economic experts forecast that the global price of gold will climb to $1,200 per ounce at the end of the year due to gold supplies decreasing by 5 percent compared with last year and international central banks and investment funds continuing to purchase gold without selling it.