Gold climbs on fast-spreading coronavirus outbreak

Thursday, Jan 30, 2020 16:45

Domestic gold prices climbed VND600,000-VND800,000 per tael on Thursday amid developments of the coronavirus outbreak in China. — Photo

Local gold prices rose on Thursday amid rising concerns over the coronavirus outbreak in China which buoyed demand for safe assets.

In the afternoon, prices quoted by Saigon Jewelry Company (SJC), Viet Nam’s biggest gold firm, stood at VND44.15 million (US$1,903) per tael for buying and VND44.55 million ($1,920) for selling, up VND750,000 for buying and VND800,000 for selling compared to the last trading day before the Tet (Lunar New Year) holiday.

A tael is equivalent to 1.2 ounces.

Gold bars sold at Phu Quy Gold, Silver and Gem Stone Group also increased VND750,000 to VND44.2 million per tael, while the company bought gold at VND44.2 million, up VND700,000 from January 22.

Meanwhile, gold prices at Bao Tin Minh Chau Jewelry Co and Doji Gold and Gem Group increased between VND550,000 and VND700,000 per tael, being quoted at VND44.2 million for buying and VND44.5 million – VND44.6 million for selling.

After the seven-day holiday, domestic gold prices jumped on Thursday in line with a fever on the world markets following which gold gained on investor fears that the spread of the coronavirus in China would impact Chinese economic data and likely push the world economy into recession.

At 3pm local time, gold futures on the New York Commodities Exchange (Comex) added 0.67 per cent to $1,580.9 per ounce. Spot gold stood at $1,581 per ounce. The safe-haven asset also increased on Wednesday.

Traders are evaluating the potential impact of the new epidemic on the global economy. Research firms have warned about overreacting at this time as the panic will ease after a few weeks or months.

The Wuhan outbreak has dominated global headlines for a week and the World Health Organisation (WHO) is set to reconvene later on Thursday and could possibly decide to announce a global health emergency over the outbreak.

The latest data on Thursday showed the virus killed 170 people and infected nearly 8,000 people around the world.

In addition, gold’s bullish trend is being supported by the Fed’s decision to keep the rate unchanged at 1.5-1.75 per cent and geopolitical tensions in some countries.

In Viet Nam, gold is expected to continue rising toward the God of Wealth Day which falls on February 3. — VNS

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