Gold jumps to new high

Gold prices in Vietnam soared to a new record of VND21.3 million a tael, or US$1000 an ounce, Saturday, as global prices rose to a three-month high in New York and London due to a weaker dollar.

Gold passed the VND21-million mark on Friday but volume remained low, with traders expecting prices to escalate further. Gold has already jumped 17 percent in Vietnam this year.

Precious metals typically move inversely to the US currency.

“Extreme dollar weakness is adding to the momentum,” Pradeep Unni, an analyst at Richcomm Global Services in Dubai, said Friday in a note. “Ascending oil prices, concerns of inflation and fears of massive US debt have certainly been supporting” gold, he said.

Gold futures for August delivery jumped $17.10, or 1.8 percent, to $980.30 an ounce on the Comex, after touching $982 earlier, the highest for a most-active contract since Feb. 24. Gold gained 10 percent this month in New York, the most since November.

Spot gold gains

In London Friday, gold for immediate delivery advanced $16.24, or 1.7 percent, to $975.70, pushing it to a 9.9 percent rise for the month.

“North Korea’s nuclear test was a cause for concern on the geopolitical front,” said Ralph Preston, a commodity analyst at Heritage West Futures Inc. in San Diego. “It’s more than a coincidence that gold is moving towards its all time high this week.”

North Korea launched a sixth test missile this week. On May 25, the Asian nation exploded an atomic device underground and later said it would no longer abide by the agreement that ended the Korean War in 1953.

Gold may rise to $1,400 an ounce during the next year, said Stephen Platt, an Archer Financial Services Inc. commodity analyst in Chicago.

The metal rose to $975.50 in the Friday afternoon “fixing” in London, used by some mining companies to sell their output, from $957.75 Thursday. (TN)

Gold prices go up again to be over VND17 million/tael

After dropping to below VND17 million/tael, the lowest level during the previous two weeks, the price of gold once again has fluctuated wildly and is currently trading at over the VND17 million/tael mark.

The domestic price of gold suddenly increased because of a dramatic rise in the world price of gold on Tuesday night, with the Federal Reserve System (FED) surprisingly cutting US$ interest rate by 0.75 percent, from 4.25 percent to 3.5 percent, with the aim of steadying the world’s biggest economy which is currently in critical condition.

The US dollar continued devaluing against the Euro. The price of gold at spot delivery in New York instantly shot up to reach over US$890/oz.

On the domestic market, SJC gold at the Sai Gon Gold, Silver and Gem Stone Company is trading at VND17.13-17.23 million per tael at present, up VND470.000/tael compared with Tuesday’s transactions. The price is applied commonly in Hanoi, Ho Chi Minh City, Da Nang, Nha Trang and Can Tho.

At 2pm on Wednesday, the price of gold at the Phu Quy Gold, Silver and Gem Stone Company in Hanoi stood at VND17.12-17.24 million per tael, up VND240,000/tael compared to the previous day.

At Bao Tin Minh Chau in Hanoi, the price of gold slightly increased but the number of people, particularly those coming to sell rather than buy gold, undertake transactions at the company remained almost the same.