HA NOI — Gold jumped about VND250,000 (US$14.79) per tael yesterday to as high as VND17.45 million in an immediate response to the US Federal Reserve’s lowering of the prime interest rate to a record low of 0.25 per cent.
The global spot price for gold was $847.20 an ounce against New York’s last close of $857.35. A tael of gold equals 1.2 troy ounces.
The precious metal has gained as much as 11 per cent last week.
The price increased to VND17.66 million ($1,044) from VND17.30 million ($1,023) five minutes after the Asia Commercial Bank’s Gold Trading Bourse opened yesterday.
Ten minutes later, the price had reached VND17.73 million ($1,049) per tael - in excess of the reference price of about VND400,000 ($23.67) per tael.
The Sai Gon Jewellery Co (SJC) listed the buying-selling price at VND17.22/17.42 million ($1,018-1,030) per tael, up by VND100,000 – 220,000 yesterday morning.
At Bao Tin Minh Chau Jewellery Co (BTMC), gold traded at about VND17.32 million ($1,024) per tael.
In Ha Noi, PNJ-DAB gold leaf by Phu Nhuan Jewellery Co (PNJ) was offering buying-selling prices of VND17.25/17.45 million ($1,020-1,032) per tael, up by almost VND300,000 ($17.75) per tael against the previous day.
"Obviously, local gold prices are matching the upward trend of global gold prices," said BTMC staffer Nguyen Huu Dang.
Some Ha Noi gold dealers reported the volume of sellers was four times higher than buyers.
And the total of gold traded was three to four times higher than last week.
"I bought some gold pieces a month ago at only VND16.28 million ($963.31) per tael," said Hai Yen, a customer at the PNJ gold shop on Tran Nhan Tong Street.
"I decided to sell them to make a small profit."
But buyer Phan Hoa said: "People tell me the US dollar will depreciate against other currencies while gold is likely to increase. I regret not buying gold sooner."
Gold traders anticipate that such sentiment is likely to push its price to as high as VND17.7 million ($1,047) per tael.
But Viet Nam Gold Trading Association senior assayer Tran Quoc Quynh argued that the low global price of oil would limit the rise.
OPEC agreed yesterday to cut production of a record 2 million barrels a day in prodcution, the Saudi Arabian oil minister Ali al-Nuamimi said, with non-member producers also ready to slash another 600,000 barrels. Crude oil for January delivery climbed as much as $1.90, or 4.4 per cent, to $45.50 a barrel on the New York Mercantile Exchange, the first increase in four days.
The Federal Reserve’s historic lowering of the prime interest rate to a target of between zero and 0.25 per cent sparked a fall in the value of the dollar against the Vietnamese dong.
On the street, it fell 0.57 per cent against the dong to VND17,250 per dollar against the VND17,300-17,350 of the previous day. — VNS
