Vietnam’s domestic gold prices topped VND53 million (US$2,286) per tael for the first time in history on Wednesday before continuing with their upward trend through Thursday morning.
Gold prices posted by trading firms gained another VND250,000 ($10.8) per tael on Thursday morning.
One tael of gold equals 37.80 grams.
The prices for buying and selling gold at the Saigon Jewelry Company (SJC) were VND52.45 million ($2,264) and VND53.4 million ($2,305) per tael, respectively, as of 10:30 am Thursday in Ho Chi Minh City.
At the same time in Hanoi, Bao Tin Minh Chau Jewelry Company purchased SJC’s gold at VND52.55 million ($2,255) per tael and sold at VND53.25 million ($2,299) per tael.
In the global market, the precious metal was traded at $1,870 an ounce in the early morning, its highest in nearly nine years.
Expert Phan Dung Khanh told Tuoi Tre (Youth) newspaper that the global gold price hike was driven by the European Union’s announcement of a budget package and a bailout package of 1.8 trillion euro (approximately $2.1 trillion) to protect economies severely affected by the COVID-19 pandemic.
That central banks continuously pump money to stimulate these economies and purchase gold reserves has triggered global gold prices to skyrocket, Khanh said.
As a result, the volatility of global markets led to the historic increase in gold prices in Vietnam.
Ho Chi Minh City-based jewelry company Phu Tho SJC’s chairman Tran Thanh Hai warned that the current VND1 million-per-tael difference between the buying and selling rates poses risks for consumers and investors.
Meanwhile, Nguyen Ngoc Trong, director of New Partner Jewelry (NPJ) Co. Ltd., advised those investing in gold to sell a portion of their reserves to make a profit.
Many international organizations forecast that gold prices will exceed $1,921 an ounce in the next few months.