Gold prices hit 15-month high
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Vietnamese gold prices are now at a 15-month high and, as always, well above global rates.
The Saigon Jewelry Company (SJC) sold bullion at VND60.75 million ($2,682.23) per tael Saturday morning, up 0.75 percent from Friday. A tael equals 37.5 grams or 1.2 ounces.
This made them around VND10 million or 19.7 percent higher than global prices.
A spokesperson for SJC said that the gap is widening because Vietnamese prices are becoming less dependent on global rates and relying increasingly on domestic supply and demand.
Global rates have risen by 5.26 percent to $1,864.74 per ounce since Nov. 4, bolstered by deepening fears of inflation and reassurances from major central banks that interest rates would remain low for the time being.
Traders are taking profits after an incredible run, Phillip Streible, chief market strategist at Blue Line Futures in Chicago, told Reuters.
Societe Generale analysts forecast gold prices to average $1,950 an ounce in the first quarter of 2022, given the “renewed commitment from the Federal Reserve to support the economy while letting inflation printing higher”.
Gold consumption in the third quarter fell by half year-on-year to 3.3 tons as jewelry stores closed due to Covid-19 restrictions, according to a report by the World Gold Council.
Questions & Answers
Q.What is the current Vietnamese gold price per tael?
What is the current Vietnamese gold price per tael?
The Saigon Jewelry Company (SJC) sold bullion at VND60.75 million ($2,682.23) per tael on Saturday morning. This price represents a 0.75 percent increase from the previous day.
Q.Why is the gap between Vietnamese and global gold prices widening?
Why is the gap between Vietnamese and global gold prices widening?
A spokesperson for SJC stated the gap is widening because Vietnamese prices are becoming less dependent on global rates. They are increasingly relying on domestic supply and demand within Vietnam.
Q.What factors have contributed to the recent rise in global gold prices?
What factors have contributed to the recent rise in global gold prices?
Global rates have risen due to deepening fears of inflation and reassurances from major central banks that interest rates would remain low. Traders are also taking profits after a period of significant gains.
Q.How did Covid-19 restrictions affect gold consumption in Vietnam?
How did Covid-19 restrictions affect gold consumption in Vietnam?
Gold consumption in Vietnam fell by half year-on-year to 3.3 tons in the third quarter. This was primarily due to jewelry stores being closed because of Covid-19 restrictions.
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