Gold prices hit 4-month high
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Vietnam’s gold prices hit a four-month high Wednesday aided by a weaker dollar, with investors expecting further stimuli in U.S. policies.
The state-owned Saigon Jewelry Company was selling its popular SJC gold at VND57.2 million ($2,484.62) per tael, up 0.17 percent from Tuesday. A tael equals 37.5 grams or 1.2 ounces.
The country’s largest jewelry company, DOJI, was also selling at the same price on Tuesday.
In the last three days, prices have increased by around 1.5 percent to their highest point since September 3 last year.
Global gold prices rose 0.1 percent to $1,950.46 per ounce after hitting a peak in almost two months earlier in the session as the U.S. dollar went to a low not seen in more than two years, according to data.
Other reports have said that investors are waiting for the outcome of the U.S. Senate runoff elections in Georgia, which will have a bearing on the fiscal policy adopted by President-elect Joe Biden’s administration.
“The underlying motivations in gold are unchanged, with lower interest rates, high inflation expectations, weaker dollar…, all these are supportive for gold in the near to long term,” said Howie Lee, an economist at OCBC Bank.
Questions & Answers
Q.What contributed to the four-month high in Vietnam’s gold prices?
What contributed to the four-month high in Vietnam’s gold prices?
A weaker dollar aided the increase in Vietnam's gold prices. Investors are also expecting further stimulus in U.S. Policies, which is another factor supporting the rise in value.
Q.Which companies are mentioned as selling gold in Vietnam?
Which companies are mentioned as selling gold in Vietnam?
The state-owned Saigon Jewelry Company (SJC) is mentioned as selling gold. Also, DOJI, described as the country’s largest jewellery company, was also selling at the same price.
Q.How much has the gold price increased over the last three days?
How much has the gold price increased over the last three days?
Over the last three days, gold prices have increased by approximately 1.5 percent. This increase has pushed them to their highest point since early September of last year.
Q.What global factors are supporting the price of gold?
What global factors are supporting the price of gold?
Globally, lower interest rates, high inflation expectations, and a weaker dollar are all factors supportive of gold. These conditions are expected to bolster gold's value in both the near and long term.
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