Gold Prices Record New Peak Again

Domestic gold prices broke the threshold of VND16 million a tael to reach the new record high of VND16.5 million November 7, fueled by the hike of gold in global market.

 

SJC gold increased VND700,000 a tael from November 6 to trade at VND16.4 million-16.5 million a tael, while the prices of Bao Tin Minh Chau rose VND600,000 a tael at VND16.35 million-16.55 million.

 

Despite the sharp price rise, the local demand for bullion remains high.

 

Nguyen Huu Dang, director of Bao Tin Minh Chau Company’s gold trading department, said purchasing power triples in November 7 morning as people were buying in a wake of increasing prices recently.

 

The fever of the domestic precious metal is resulted from the soaring gold price in the world market, boosted by the escalation of crude oil price to the highest peak in the last 27 years at US$98 a barrel, the sharp devaluation of the greenback against the euro and the fear of high inflation.

 

Investors continued buying gold as the most wanted investment channel on worries that the subprime crisis in the U.S will affect after the world’s biggest bank, Citigroup, announced a loss and sacked its CEO.

 

Last year, the gold prices hit the highest price at VND15.1 million a tael in May. (Vietnam Economic Times, VNA)