Gold prices and US rates go up in the market

March 18, 2020 - 15:21
Global and local gold prices increased on March 18 when the forex rate of US notes went up at most local banks.



The US dollar prices went up at most commercial banks in Việt Nam on March 18. — Photo

HÀ NỘI — Global and local gold prices increased on March 18 when the forex rate of US notes went up at most local banks.

Spot gold on the global gold exchange rose 0.1 per cent to reach US$1,529.69 per ounce ($1843.2 per tael), when many analysts thought the US central bank's steps to support liquidity helped boost the prices of the yellow metal.

In the local market this morning, Doji asked VNĐ46.80 million ($2,016) for each tael of gold, while Sài Gòn Jewellery Company (SJC) and Bảo Tín Minh Châu gold firm rated VNĐ46.30 million and VNĐ46.25 million each for each tael of gold in selling prices, respectively. 

Similar prices were asked at the smaller gold shops in the city. Buying and selling price gap was still lower than VNĐ1 million in most of the company.

On March 18, each tael of gold in Việt Nam was $173 higher than its equivalent in the world market.

In the local forex market, the US dollar prices increased about VNĐ30 since the beginning of the week to reach more than VNĐ23,300 this morning in most commercial banks in Việt Nam.

Vietcombank, BIDV, Techcombank, VietinBank and ACB were buying at VNĐ23,150 to VNĐ23,175 per dollar and selling at VNĐ23,315 to VNĐ23,324 per dollar.

In the flea market, the US dollar's buying and selling rates were VNĐ23,250 and VNĐ23,270 respectively.

According to the analysis of Bảo Việt Securities company (BVSC), the State Bank of Việt Nam (SBV) move following other central banks to cut interest rates on March 16 will partly reduce the pressure of appreciation for the Vietnamese đồng to other strong currencies.

Meanwhile, finance expert Nguyễn Đức Độ told local media: “The local exchange rate in 2020 will remain stable even though the currencies in the world may fluctuate sharply.”

Độ explained as Viet Nam was still on the watch list of the US Treasury Department, SBV will be very cautious in using exchange rate policy to support the economy.

The expert thought the foreign currency reserves of about $80 billion could ensure the stabilisation of forex rate in Viet Nam.

According to this expert, the factors of supply and demand of foreign currencies will likely not be detrimental. 

Độ thought as the pandemic of COVID-19 slowed down the global economy, it also reduced the demand of import and export that needed foreign currencies. — VNS