Customers in a gold shop. Domestic gold prices soared to VNĐ49.4 million (US$2,128.66) per tael on Monday. — Photo vietnamnet.vn

By Minh Hương

HÀ NÔI  — Domestic gold prices soared to an eight-year high on Monday, reaching VNĐ49.4 million (US$2,128.66) per tael ($1,766.4 per ounce).

That level was last surpassed in September 2011, when prices reached VNĐ49.3 million per tael.

Bảo Tín Minh Châu gold firm listed an increase of about VNĐ4 million from last Friday afternoon.

Doji reported prices of VNĐ49.2 million, while Sài Gòn Jewellery Company (SJC) posted VNĐ49 million per tael.

Smaller shops were asking for VNĐ50 million.

On the global gold exchange Kitco, after passing a seven-year high, prices rose 2 per cent to $1,682.7 per ounce ($2,027 per tael) the same day.

Michael McCarthy, chief market strategist at CMC Market, told Reuters: “The thinking is that fewer people are holding shares, selling down in particular, and that money has to fall into havens.”

On the local market, a tael of gold on Monday was $100 more than global prices, and websites of most gold firms were overloaded.

Bảo Tín Minh Châu recorded a surge in transactions on Monday with 55 per cent buyers and 45 per cent sellers. The firm said on its website it was a good time for investors to trade gold to make a profit.

Disagreeing, Phan Dũng Khánh, investment director of Maybank Kim Eng Securities, told Việt Nam News it was not a good time to sell gold or speculate in the precious metal.

Khánh said prices also rose two years ago when cash was diverted from the declining Bitcoin to gold. He said COVID-19 and China-US tensions had added to the sharp increase, and said global prices could reach $2.000 per ounce ($2,410 per tael) this year.

“Investors must be extremely cautious if they buy gold now,” Khánh said.

“Normally the gap between selling and buying is VNĐ500,000-700,000, but today it reached more than VNĐ1 million. Prices could fluctuate a lot,” he added. 

On the State Bank of Việt Nam (SBV)'s website, there were no announcements regarding the management of gold prices. 

“SBV does not need to make an announcement because Decree 24 on gold price management issued in 2012 had done a great job stabilising the local forex market and gold prices,” Khánh said.

“Gold demand in Việt Nam was now lower than in global markets,” he said, adding that people had stopped hoarding gold.

“However, at these prices, investors are unsure which way to turn.’ — VNS