A jewellery shop in HCM City. — VNS Photo Xuan Huong

Gold sales increased sharply in HCM City in July, according to the State Bank of Vietnam.

More than 132,450 taels of gold were bought last month, 51 per cent up from the previous month, for VND6.899 trillion (US$696.3 million), while 80,019 taels were sold, up 10 per cent, for VND3.893 trillion ($167.2 million), its HCM City branch reported.

A tael equals 1.22 ounces or 37.5gm.

According to the central bank, gold prices have risen to new highs since July on the back of global trends.

Globally, prices topped US$2,000 for an ounce for the first time ever on August 5.

Among the reasons for the rise are the impact of COVID-19 on markets, concerns over tensions between the US and China and stimulus packages to combat the economic impact of the pandemic released by countries, which sparked inflation concerns.

In Viet Nam, SJC gold prices reached a record VND 62 million ($2,663) on August 6. At the end of 2019 the precious metal was selling at VND 43.13 million.

The central bank said as of mid-August global prices (based on free market exchange rates) were VND2.6 million per tael lower than in Viet Nam, down from VND3.7 million late last month but much higher than the VND138,000 at the end of last year.

Despite the volatility in prices, the domestic market saw little speculation, it said.

At 5pm on August 27 the buying and selling prices were $1,940 and $1,941 per ounce on the world market and VND55.3 million and VND56.3 million per tael in Viet Nam. — VNS