Making news

Domestic gold prices hit two-year high on global heat

Local gold prices hit a two-year high on June 21 as the global market continued to heat up.

Most enterprises hiked prices to more than 39 million VND (1,675 USD) per tael in the morning after spot gold climbed to six-year high of 1,406 USD per ounce on the global market (one tael is equivalent to 1.2 ounces).

In Vietnam, the yellow metal slowed in the early afternoon but still hovered around the two-year high.

At 2pm, the buying/selling prices at Sai Gon Jewelry Joint Stock Company (SJC) in Ho Chi Minh City reached 38.35 million VND and 38.60 million VND per tael, lower than the morning quotation of 38.75 million VND and 39.05 million VND.

Prices quoted in Hanoi and Da Nang were 38.35 million VND for buying and 38.62 million VND for selling.

Other gold businesses also decreased their gold prices to below 39 million VND per tael in the afternoon.

Bao Tin Minh Chau Jewellery and Gemstone Co Ltd quoted their buying/selling prices of JSC gold at 38.54-38.70 million VND per tael, up more than 1 million VND per tael compared to June 20’s close.

Prices of its branded gold – Thang Long Dragon gold – dropped by more than 400,000 VND per tael from the morning to 38.39-38.84 million VND per tael in the afternoon. However, these prices were still about 300,000 VND higher than that on June 20.

Both Doji Group and Phu Quy Jewelry quoted their gold prices at around 38.4-38.7 million VND per tael.

Gold prices of most companies increased more than 1 million VND per tael in the last two days.

A representative of Bao Tin Minh Chau Jewellery said local gold prices had increased in line with fluctuations in the global market.

Global gold prices surged to a six-year high of more than 1,400 USD per ounce. At the end of June 21 morning, spot gold prices stood at nearly 1,406 USD per ounce while gold futures delivered in July 2019 recorded on Comex of the New York Mercantile Exchange were at 1,407 USD per ounce.

Those gains came after the US Federal Reserve signalled it was ready to cut interest rates as early as next month, sending the US dollar lower against most currencies.

The yellow metal has gained 4.8 percent over the past five days.

Global gold prices usually climb every time the Fed announces cuts to interest rates.