A volatile global market plus higher year-end demand has pushed gold prices in Viet Nam up over the last six weeks with more hikes expected.

Gold spot gained nearly 2.7 per cent to US$1,223 per ounce on Tuesday from $1,200 per ounce on October 1, data on kitco.com showed.

On nymex.com, gold futures rose 2.8 per cent to $1,225 per ounce on Tuesday from $1,191 on October 1.

In Viet Nam, prices published by local companies have also risen in recent weeks.

At Bao Tin Minh Chau Jewellery and Gemstone Co and Phu Nhuan Jewellery JSC, gold bars were being sold at around VND36.5-36.6 million per tael (around $1,620 per ounce) on Tuesday.

Local gold prices have increased by around 0.3 per cent since October 1.

According to PNJ general director Le Tri Thong, gold prices always rise in the second half of the year.

Gold trading is higher in the last six months because it is a time for holidays and big events, so demand for jewellery and gold increases.

This year, the domestic gold market had been affected by external factors, which had mostly come from the trade tension between China and the US, he said.

The tensions had pushed the US dollar up against other currencies and increased Viet Nam’s exchange rates, he said, adding that the possibility of further Fed rate hikes had also contributed to the market trend.

According to Tran Thanh Hai, chairman of the Vietnam Gold Investment and Trading Corporation, other factors that had helped pushed gold prices up included issues related to Brexit.

According to Bank of America (BoA), investors didn’t want to put their assets at risk and the US dollar may not be a “safe haven” for them.

Positive gains of gold prices have been supported by the uptrend of US stocks and a stronger US dollar against other currencies.

In addition, the US Federal Reserve has kept its lending rates steady at 2-2.25 per cent and signalled more rate hikes in the future.

Experts have said that a potential “hard Brexit” could have positive impacts on gold prices in the near future.

The International Monetary Fund (IMF) recently reported that potential risks arising from a “hard Brexit” would disrupt production and service activities, thus benefiting gold prices.

Gold prices are forecast to rise above $1,235 per ounce and could go higher in 2019. — VNS