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COVID-19 sends Vietnam's gold price soaring to 8-yr high

COVID-19 sends Vietnam's gold price soaring to 8-yr high

Saturday, February 22, 2020, 16:54 GMT+7
COVID-19 sends Vietnam's gold price soaring to 8-yr high
An employee shows gold bars at a gold shop in Ho Chi Minh City, Vietnam. Photo: Ngoc Phuong / Tuoi Tre

Vietnam's domestic gold price soared on Friday to reach its highest level since 2012 while global prices also hit a seven-year peak amid the ongoing novel coronavirus disease (COVID-19) epidemic.

On Friday afternoon, one tael of gold (1 teal = 37.8 grams) at Vietnam's biggest gold firm Sai Gon Jewellery Company (SJC) was sold at about VND45.95 million (US$1,985), an increase of VND300,000 ($13) from the previous day.

Similar increases were also recorded at large gold firms Bao Tin Minh Chau and Doji, according to the official Vietnam News Agency.

Compared to the beginning of the week, prices for each tael of gold have increased more than VND1 million ($43), it said.

On the global gold exchange Kitco, the precious metal gained nearly three percent within the week to reach $1,633.7 per ounce ($1,968 per tael) on the same day.

According to Reuters, gold prices hit their highest level for seven years and also had their best week in more than six months as demand for the safe-haven asset increased after a spike in coronavirus cases.

In the local market, Bao Tin Minh Chau Gold Firm in Hanoi recorded more gold transactions on Friday with 55 percent of buyers and 45 percent of sellers.

“It is a good time for investors to trade gold to make a profit,” the firm said on its website.

However, many gold traders on Ha Trung Street, a well-known place that trades gold and foreign currencies in Hanoi, did not see much difference in the number of customers buying gold.

An employee from Hong Phat gold shop on the street who wished to remain anonymous told Viet Nam News that “they [gold investors] changed a lot. They used to shop for gold whenever the prices were higher.”

“Our business declined much after Tet and also because of the [COVID-19] epidemic. No one wants to buy anything,” she added.

The same day, one of the country's biggest gold and jewelry firms Phu Nhuan Jewellery reported a reduction of 32 percent in revenue in January compared to last year.

A press release from the firm blamed the decline on higher gold prices and the novel coronavirus.

Tuoi Tre News


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