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Vietnam’s gold prices surge 16 pct against global trend

13/07/2016

Gold prices in Vietnam have been rising dramatically over the last two weeks, continuing an upward trend that has seen the price per tael move from VND34.1 million ($1,522) to nearly VND40 million (US$1,786) per tael (37.5 grams).

 

Gold closed Tuesday at VND36.9 million ($1,647) a tael and kept soaring right through the opening of the Wednesday’s trading session.  It ended the day at VND39.7 million ($1,772) a tael after peaking at VND39.8 million ($1,777) shortly before the session closed.

Wednesday’s price surge widened the gap between Vietnamese and global gold prices to a VND2.75 difference ($123) per tael.

The upward trend first began on June 23, when prices were at VND34.1 million per tael.  Over the past few weeks, prices climbed past VND35.55 million a tael on June 27 and VND36.9 million a tael on July 5, before peaking yesterday evening.


This graph shows the development of gold prices in Vietnam (red line) from June 23 to July 6

The rapid ascension of prices resulted in a rush to local shops to buy gold. PNJ, one of the country’s leading gold traders, said sales in the last couple of days spiked by 200-300% times compared to earlier this month, topping 200 to 300 taels a day.

Most of the purchases were made by individual buyers, said PNJ deputy general director Nguyen Thi Cuc, adding that big investors purchasing more than 30 taels were few.

While some who had bought the precious metal at VND33 or VND 34 million or VND34 a tael came to gold shops to sell for profit, the “buyers still outnumbered sellers,” she added.

“Supply has been falling short against rising demand gold holders were reluctant to sell, leading to an unusual price surge,” Cuc explained.

Nguyen Thanh Long, chairman of the Vietnam Gold Traders Association, attributed the two-week spike of gold prices in the country to a psychological factor.

“Those who have gold do not want to sell at the moment, believing that prices will continue soaring.  Meanwhile, many people are trying to invest in gold, leading to a spike in demand without any increase in supply.  The supply has dropped and prices have surged.” he said.

TUOI TRE NEWS

Updated : 07/07/2016 13:44 GMT + 7

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