Domestic gold price today surged VND1.19 million a tael to VND41.3 million a tael, the highest in history, after world price has skyrocketed from $1,660 to $ 1,672 an ounce.
As of 2:30 pm, ask and bid prices of gold bullion produced by the Ho Chi Minh City-based Saigon Jewelry Co, Hanoi-based Bao Tin Minh Chau and HCMC-based Sacombank Jewelry Co were quoted at VND41.17 million/VND41.32 million, VND41.14 million/VND41.3 million, and VND41.16 million/VND41.29 million respectively.
According to the gold traders, although gold transactions recovered this morning, there was not much trading. Some people having idle money bought gold to preserve their capitals, but the common purchase volume was around one-tenth tael to a tael.
As gold prices rise continuously over the last 2 months, there are fewer and fewer sellers these days.
In the morning session, it leaped VND790,000 a tael after its international counterpart jumped from $1.630 an ounce to $1.660 an ounce.
Even though US President Obama has signed the bill to officially raise US public debt ceiling, which lowered gold spot to $1.657,5 an ounce as of 12:00 pm local time, spot gold then made a U-turn after the economic data released from US, EU and China showed that global economic recovery has lost its momentum.
With signals of economic recovery slowdown, the U.S. Federal Reserve (FED) will likely have to provide the 3rd economic stimulus package.
During the implementation of the current second economic stimulus package, the world gold price has risen more than 20 percent.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, Monday continued to buy in 18.18 tons of gold, bringing the fund's holdings to 1,281.75 tons - the highest since the beginning of the year.
A new movement is that though the gold price last night triggered a new bullish market for sellers, those in Asian markets still increased buying.
In addition, international central banks continue to buy gold in order to diversify and fortify their foreign exchange reserves.
While the central bank of China said it is seeking to further diversify its foreign exchange reserves in the form of gold, its counterparts in Thailand and South Korea have announced to buy 17.7 tons and 25 tons of gold for their reserves respectively.
At 10:00 am today, many banks increased the forex rate by around VND5-10 a dollar day on day. The bid and ask prices of the greenback at Vietcombank increased to VND20,565 and VND20,615 respectively.
Average inter-bank forex rate today was VND20,608 a dollar, staying unchanged for 22 consecutive days. The bid and ask rates at the exchange office of the State Bank of Vietnam today was quoted at VND20,600 and VND20,814 a dollar.