Gold prices in Vietnam hit an all-time high of VND20.43 million a tael Thursday, as globally the metal remained in an uptrend.
Saigon Jewelry Holding Company gold closed the day at VND20.41 million a tael (1.2 ounces) in Ho Chi Minh City and VND20.43 million in Hanoi, VND250,000 higher than Wednesday.
In Tokyo, gold rose for the third straight day to hit a new eight-week high above US$942 an ounce, buoyed by firmness in oil prices and the dollar’s recent slide to its lowest level in nearly five months.
But gains were mainly driven by funds buying US gold futures, resulting in arbitrage cash gold purchases, while a rise in Asian currencies against the dollar capped the price of gold denominated in regional currencies, traders said.
“It’s up mainly because of short-covering in the market,” said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.
“The dollar is weakening again and the oil price is up, which favors gold for a little while.”
Spot gold rose 0.5 percent to $941.90 an ounce by 05:37 GMT, compared with the New York notional close of $937.10.
On the London Bullion Market, the price of gold rose to $940.89 from $939.50 late on Wednesday.
Though domestic gold rose to a new record level, SJC said not many people bought or sold the metal Thursday.
But bullion trading volumes were very high at gold exchanges. Vietnam Gold Exchange posted a volume of 154,000 taels and Sacombank Jewelry, 370,000 taels.
Huynh Trung Khanh, vice chairman of the Vietnam Gold Business Association and a consultant to the World Gold Council, said gold could climb to VND21 million if global prices reach $980.
Tran Thanh Hai, general director of the Vietnam Gold Business Company, which operates the Vietnam Gold Exchange, agreed saying the price is likely to top VND21 million in the next three months.
