The price of gold on the Ho Chi Minh City market climbed to more than 13 million VND per tael (38g/1.25 ounces) over the weekend, the highest level in the past 11 months.
According to Sai Gon Jewellery Co, the buying price for gold last Saturday reached 13.15 million VND per tael and the selling price 13.22 million VND per tael. This was an increase of 1 million VND per tael against a day earlier.
In Ha Noi, gold prices ranged from 13.16-13.20 million VND per tael on April 16, up 800,000 VND per tael. These numbers nearly reached those of the gold prices on the global market, which surged to 686-87 USD per ounce (13.26-13.27 million VND per tael) ( 1 ounce = 0.83 taels).
Le Xuan Dong, head of the Transaction Department of Bao Tin Minh Chau Jewellery Co, said increasing global gold prices were a key factor causing the rise in gold prices on the domestic market.
"However, the fall in the securities market is also seen as an important factor causing the increase in domestic gold prices," he said." Many clients (of Bao Tin) said that they used money gained from the securities market to buy gold to keep in reserve until the securities market calmed down."
The recent growth is also a product of dollar depreciation as many investors have turned to channeling capital into investment in gold.
In addition, rising oil prices amid the peak period of US oil consumption and strong demands for gold jewellery for India's upcoming wedding season have been cited as factors contributing to the upward trend in prices. Indian jewellery traders said that this year their country had already imported some 600 tonnes of gold in preparation for the approaching wedding season.
According to Dong, the climb in local gold prices will likely continue over the next couple of months.
"Domestic gold prices may peak at a little over 14 million VND per tael. I think setting a new growth record (like 15 million VND) is unlikely," he said.
The current growth in domestic gold prices has yet to meet that of last May, when prices hit 14 million VND per tael.
No fluctuations in purchasing power have been reported.
Source: VNA
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