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Gold price free-for-all helps to eradicate market disparity

Update: September, 21/2013 - 10:17
Gold jewelry trading takes place in Dinh Tien Hoang Street in downtown Ha Noi. — VNA/VNS Photo Tran Viet

HCM CITY  (VNS) — Gold prices have been very volatile in recent days and the big gap between global and domestic prices has narrowed.

On Thursday morning the price of the precious metal in HCM City shot up by more than VND630,000 to VND37.8 million (US$1,791) per tael of 37.5 grammes.

By 5pm it had risen further to VND38.05 million.

There was a slight correction as of 1.30pm yesterday, with the buying and selling gold rates falling to VND37.75 million and VND37.90 million.

But they remained VND600,000 higher than two days earlier.

The trend was virtually identical in Ha Noi.

Analysts said domestic prices were tracking a sudden global surge, with international prices rising by US$67 per ounce to $1,360 in the last three days, a 15-month record for a three-day period.

Nguyen Duc Trong, sales director of Phu Nhuan Jewellery Company, said the global price rose sharply after the US central bank, the Federal Reserve, changed its mind about easing its quantitative easing.

Trong said the sharp increase in global prices has brought them closer to domestic rates, narrowing the long-existing difference by VND1 million to VND3.2 million per tael.

Nguyen Cong Tuong, deputy head of the Sai Gon Jewellery Company's gold trading division, said the price increase caused many investors to rush to buy bullion since they were afraid of a further rise.

On Thursday SJC sold 3,000 taels, double the previous days' figure, Tuong said.

A spokesperson for Bao Tin Minh Chau Jewellery and Gemstone Company too said buying surged at its outlets. — VNS


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