The price of gold in Vietnam on November 4 peaked an all-time high of VND34.3 million a tael (1.2 ounces) after global prices tumbled at the end of yesterday.
Gold was collected at VND34.1 million and traded at VND34.3 million as of 11 am local time. The metal surged by VND500,000 a tael over last evening.
Saigon Jewelry Co., the biggest gold shop in Vietnam, bought the metal at VND34.1 million and sold at VND34.2 million as of 10:25 am local time.
Sacombank Jewelry Co. updated its prices for eight times by 10:15 am, buying at VND33.95 million and selling at VND34.14 million.
Hanoi-based Phu Quy Jewelry bought SJC-brand gold at VND34.1 million and sold at VND34.3 million as of 11 am.
At the same time, gold was also traded at the same level at Bao Tin Minh Chau.
Explaining a sudden rise of domestic gold price, gold traders said that buying demand increased since the beginning of the day. In addition, gold gained significantly in the trading session in Asia.
According to Nguyen Thi Cuc, deputy general director of Phu Nhuan Jewelry Co., the number of customers went to her company to buy gold suddenly rose for an unknown reason this morning.
The company sold more than 200 taels within an hour after it opened. This was strange because customers rarely buy gold at the beginning of the trading session as the prices are usually unstable at this time, she said.
She also added that domestic gold supply became scarce after the State Bank of Vietnam issued new regulations which don’t allow firms to borrow gold to produce and trade, as well as commercial banks to sell mobilized gold.
The US dollar exchange rate unexpected rose by VND150 per dollar at 10 am in Hanoi after falling by VND70 per dollar early morning. Dollars were bought at VND20,950 and sold at VND21,050.
Internationally, gold declined as the US Federal Reserve announced a stimulus below estimates by economists.
Before the Fed’s announcement, gold for immediate delivery some time surpassed US$1,365 an ounce. However, a modest quantitative easing package in a rather long time disappointed investors, causing the metal to sink to $1,325 an ounce.
Closing the trading session, spot gold lost $8.7 an ounce, or 0.6 percent, to $1,349.8 an ounce.
This morning, a weaker greenback boosted the precious metal prices in Asia. Bullion soared $7.5 an ounce over the closing price in New York to around $1,357 an ounce as of 9:55 am Vietnamese time.
The Fed yesterday announced a $600 billion asset-purchase plan in eight months to revive economic growth sending the US dollar to the lowest level this year versus other major currencies.
The greenback exchange rate against the euro plunged to $1.41 after the Fed’s announcement.
Crude oil futures for December settlement rose as much as $0.79 a barrel to $84.69 a barrel.
This morning, crude oil went up to $85.2 an ounce as of 10 am Vietnamese time.