Gold sees strongest price increase in three months

09:48 | 30/12/2019
The domestic gold price saw its strongest growth in three months last week after beating the milestone of VND42 million (US$1,817.40) per tael.
gold sees strongest price increase in three months
Gold prices at Viet Nam's trading firms last week increased by a total of VND700,000-800,000 per tael to more than VND42 million per tael.

Gold prices posted by trading firms in the week of December 23-29 gained VND700,000-800,000 per tael, equal to VND0.93-VND1.06 million for an ounce.

Buying and selling prices at Saigon Jewellery Company (SJC) on Sunday were VND42.05 million and VND42.45-42.47 million per tael.

At Bao Tin Minh Chau Jewellery Company, the buying price was VND42.19 million and the selling price VND42.34 million.

On international markets, spot gold futures advanced 1.67 per cent during the week to trade at $1,510.56 for an ounce, the highest point since early November.

Gold futures have increased by nearly 17.8 per cent in total since the beginning of the year.

Analysts believe the strong growth of gold prices around the word was made by worries about a vulnerable global economy, led by the US and China.

In addition, traders and investors also doubt the certainty of the US-China Phase 1 trade agreement, which is expected to be signed in January.

Such worries have encouraged investors to look for safe alternatives instead of shares and other risky assets, pushing gold demand up.

In the near future, gold prices could go up further and could touch $2,000 an ounce.

Gold still a long-term investment

This year there have been two major increases of gold price in Viet Nam, both connected to the volatility of global markets.

The first wave was in May-June when spot gold’s selling price jumped from VND36.30-36.47 million per tael in late May to about VND39.25 million per tael on June 25 – marking the highest level in three years.

The second wave was in August when spot gold’s selling price jumped by VND2.5 million to more than VND42 million in only a week. Then, the selling price went up steadily to approach VND43 million in early September before falling back to VND41.6-41.8 million prior to last week’s growth.

In 2019, Vietnamese spot gold prices have gained a total of 14 per cent. The rate doubles saving interest rate of 12-month saving term posted by banks and slightly higher than corporate bond yield rates of 12-14 per cent annually.

Compared with corporate bonds, investing in gold is widely considered safer and more stable. However, investors should have a long-term taste instead of trading gold for instant profits.

VNA

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