Gold products offered at Bao Tin Minh Chau Firm in Ha Noi. Gold prices soared on Friday morning. — Photo haiquan

HÀ NỘI — Local gold prices soared back to hit VNĐ47.7 million (US$2,053) per tael ($1,703.7 per ounce) yesterday morning.

Each tael of gold increased between VNĐ400,000 and VNĐ600,000 from its level on March 5. The price gap between selling and buying was more than VNĐ1 million.

At the beginning of the day, Doji was asking VNĐ47.7 million for each tael of gold, while Sài Gòn Jewellery Company (SJC) posted VNĐ47.25 million per tael. Bảo Tín Minh Châu gold firm listed its precious metal at VNĐ47.35 million each in the selling prices. Smaller shops were also asking for similar prices.

On the global market, gold prices inched higher on Friday and were poised for their biggest weekly gain since October 2011, as mounting worries over the economic fallout from the fast-spreading coronavirus drove investors towards the safe-haven metal.  

On the gold exchange Kitco, prices rose 2 per cent to $1,677 per ounce ($2,020 per tael) on Friday’s morning.

Hà Nội - based Bảo Tín Minh Châu Gold firm recorded a surge in transactions in the morning 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.

However, in the afternoon, all gold sellers rated their prices of the metal down by about VNĐ500,000 for each tael. 

Talking to Việt Nam News, Phan Dũng Khánh, investment director of Maybank Kim Eng Securities, said: “ Prices could fluctuate a lot. Investors should take great caution with gold trading.”

Khánh thought the gap between selling and buying was kept at maximum at VNĐ500,000-700,000 for the last few years but now it became large again, adding: “In the last several weeks, it has been of more than VNĐ1 million.”

Khánh said besides Covid-19 epidemic, the fear of the economic crisis, China-US tensions, Gulf issues and others had added to the sharp increase.

Most important, according to Khánh, “was the net buying of gold in a lot of central banks.”

According to the World Gold Council's report named "Gold demand trends full year and Q4 2019”, released on January 30, the central bank net purchases in 2019 were remarkable. The annual total of 650.3 tonnes is the second highest level of annual purchases for 50 years, highlighting the importance central banks place on having an allocation of gold in their reserve portfolio. The highest level was recorded in 2018 at 656.2 tonnes.

As Khánh thought the global prices could reach $2,000 per ounce ($2,410 per tael) this year, he said: “Gold is sparkling again.” — VNS