Gold prices touched a record high of VND21.86 million a tael (1.2 ounces) in Vietnam on September 7 as global prices opened the week with a slight correction and are expected to top $1,000 an ounce soon due to speculation.
The metal was bought at above VND21.80 million and sold at VND21.86 million at most jewelers’, an increase of VND90,000-120,000 a tael from last weekend.
Most shops, eager to buy gold to make jewelry for the upcoming wedding season, kept the difference between their selling and buying rates at just VND50,000 a tael.
But Luu Quang Dien, deputy general director of Saigon Jewelry Co.’s Hanoi office, said since bullion prices have remained steady above VND21 million for a long time, this measure failed to improve trading volume.
Most investors expect the price to cross VND22 million, he said.
Globally, bullion slid September 7th, snapping a four-day advance, as investors sold holdings to take profits after gold surged to near its highest levels this year.
In Asia, the price for immediate delivery swung around to US$993 an ounce, a fall of $2-3 an ounce from the New York closing price last week.
Major investment funds collected the metal heavily as the global equity markets showed signs of slumping. In addition, the US Commodity Futures Trading Commission has strengthened control over kerosene trading, prompting major funds to shift to bullion.
Gold also climbed because investors worried the US dollar would slide for a long period.
Crude oil futures for October rose as much as $0.06 a barrel from last weekend to $68.08 a barrel on the New York Mercantile Exchange at 10:45am Vietnamese time.
The State Bank of Vietnam fixed the dollar exchange rate at VND16,976 while the State-owned Vietcombank traded the greenback at VND17,825.