Gold prices soar at home and abroad

On Friday afternoon, the price for one tael at Viet Nam's biggest gold firm Sai Gon Jewellery Company (SJC) gold was sold at about VND45.68 million (US$1,970.2), an increase of VND630,000 from yesterday.— Photo thanhnien.vn

The domestic gold price soared on Friday while global prices hit a seven-year peak amid the ongoing novel coronavirus outbreak.

Similar increases were also recorded at large gold firms Bao Tin Minh Chau and Doji.

Compared to the beginning of the week, prices for each tael of gold have increased more than VND1 million.

On the global gold exchange Kitco, the precious metal gained nearly 3 per cent 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 Ha Noi recorded more gold transactions yesterday with 55 per cent of buyers and 45 per cent of sellers. The firm said on its website: “It is a good time for investors to trade gold to make a profit.”

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

An employee from Hong Phat gold shop on the street who wished to remain anonymous told Viet Nam News: “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 epidemic. No one wants to buy anything,” she added.

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

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