Gold bars near VNĐ81 million mark, rings low on supply

Gold bars being sold at a shop in Hai Bà Trưng District, Hà Nội. VNA/VNS Photo

Domestic gold prices increased today, nearing VNĐ81 million per tael for SJC gold bars and 67.7 million per tael for SJC gold rings, with both running low on the supply side, following a sharp global price hike pushing trading to around 2,112.8 USD per ounce (1 ounce=0.75 tael).

Earlier in the morning today, DOJI gold prices in Hà Nội and HCM City were quoted at VNĐ78.65 million/tael for sellers and VNĐ80.65 million per tael for buyers, an increase of VNĐ300,000 per tael compared to the previous session. The buying-selling spread was stable at around VNĐ2 million per tael.

Meanwhile, SJC gold prices are quoted at VNĐ78.7-80.72 million per tael, up VNĐ300,000 per tael compared to the previous session. SJC 9999 gold rings continue to set new records, trading at VNĐ66.5 million per tael for sellers and VNĐ67.7 million per tael for buyers.

PNJ gold was bought at VNĐ66.5 million per tael and sold at VNĐ67.7 million per tael by gold shops, increasing by VNĐ900,000 per tael and 850,000 VND per tael, respectively, compared to the previous session.

As of 9.30am today Hà Nội time, global gold prices have sharply increased by US$32 compared to the previous session, currently at $2,012.81 per ounce. However, domestic gold prices are still more than VNĐ17 million per tael higher than global price. One tael equals 0.03751 kilogrammes.

Global gold price has reached its highest level in the last three months since the beginning of the week. The market increased expectations that the Federal Reserve (FED) would implement monetary policy easing.

According to CME's FedWatch interest rate tracker, markets are pricing in a 67 per cent chance that the US's central bank will cut interest rates in June.

In addition to interest rate expectations, commodity strategist Ole Hansen of Saxo Bank notes that increasing geopolitical tensions are another factor driving the current upward trend in gold.

This morning, the USD-Index was at 103.86 points as the US 10-year Treasury bond yield has slightly decreased to 4.218 per cent with US stocks relatively stable, awaiting the new interest rate direction from the FED. Oil prices remained flat, trading around $82.69 per barrel for Brent crude and $78.5 per barrel for WTI crude. VNS