Experts said that the gold price would hit the VND15mil/tael ($937.5) level, repeating the gold fever seen in 2006.
The gold price in the domestic market has exceeded the VND13mil/tael ($812.5) level. The gold market is expected to be continuously hot in the time to come when the greenback devaluates, oil prices increase and gold demand increases in India as the country enters the wedding season.
Like previous increases, the gold price in the domestic market has increased because of the world’s price hike. Last week’s closing price was at $684.8/oz in the international market, equivalent to VND13,290,000 per tael, after continued increases from $677/oz (VND13,140,000/tael).
At this time last year, the gold price stayed at below VND12mil per tael. The highest peak was seen in May 2006, at VND14-15mil per tael, while hitting VND15.1mil on May 12, 2006, which was equivalent to the world’s price at $720/oz. However, the price then fell down quickly, by 10% over a few days.
Analysts said that the price increases in the last several days just repeated the previously recorded levels, and have not caused any big changes in purchasing power. Though people are interested in the price fluctuations, they are not rushing to buy or sell gold as they did one year ago.
In addition, as real estate remains cool, the demand for purchasing gold to make payment for real estate trading deals has not increased yet, while people make payments for apartments and land in VND cash. That explains why the gold market remains quiet.
Source: VNN
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