Gold continues to climb on global volatility

Wednesday, Jul 03, 2019 15:25

Customers at a gold store in Ha Noi. Local gold prices continue to shoot up on Wednesday morning. — VNA/VNS Photo Duc Duy

Domestic gold prices shot up on Wednesday after gold hit a six-year high again on the global market.

In the early morning, Sai Gon Jewelry Joint Stock Company (SJC) increased its selling price by more than VND1 million to VND39.47 million (US$1,694) per tael, or 1.2 ounces.

Its buying price was also up VND800,000 per tael to VND39.05 million.

The prices slowed slightly in the early afternoon but remained at the highest level in many years, with the buying/selling prices staying at VND38.95 million and VND 39.25 million per tael respectively for transactions in HCM City.

The selling prices in Ha Noi and Da Nang cities were VND200,000 higher at VND 39.27 million per tael.

In the early afternoon, SJC gold prices quoted by Bao Tin Minh Chau Jewellery and Gemstone were VND38.85 million per tael for buying and VND39.30 million per tael for selling, up VND670,000 per tael compared to Tuesday’s close.

Prices of its branded gold – Thang Long Dragon – also increased to VND38.78 million and VND39.28 million per tael for buying/selling.

Doji Group also increased both their buying and selling prices by VND9700,000 and VND1.05 million per tael in the early morning to VND39.2-39.7 million per tael.

Their prices dropped a little towards noon, being traded at around VND38.9 million per tael.

Gold has shown it is extremely sensitive to geopolitical volatility.

The yellow metal's price shot up on Tuesday, reclaiming a six-year peak after the US threatened to impose new tariffs on an additional $4 billion of goods from the European Union (EU) over the dispute between aircraft giants Boeing and Airbus.

On Wednesday morning, gold prices continued to rise with the spot price reaching more than $1,425 per ounce, while the gold price delivered in August on the New York Stock Exchange stood at $1,428.8 per ounce.

Economists have predicted the US non-farm payrolls data due on Friday, which should help investors better assess the Fed’s possibility of cutting interest rates, and potential for renewed trade tension and broader geopolitical risk would spur further investment in gold. — VNS

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