Gold prices go up, SBV commits to stabilise market

August 07, 2020 - 08:24

Prices of the yellow metal soared a new record reaching VNĐ62 million (US$2,681) per tael or 1.2 ounce in Việt Nam on Thursday after the State Bank of Việt Nam (SBV) confirmed to have solutions and sufficient resources to stabilise the market.


Customers buy gold at Bảo Tín Minh Châu stores in Hà Nôi. The prices rose sharply in the market on August 6. — VNA/VNS Photo Trần Việt 

HÀ NỘI — Prices of the yellow metal soared to a new record, reaching VNĐ62 million (US$2,681) per tael, or 1.2 ounces, in Việt Nam on Thursday after the State Bank of Việt Nam (SBV) confirmed it has solutions and sufficient resources to stabilise the market.

At 2pm on Thursday, the Saigon Gold and Jewelry Company rated each tael of SJC gold more than VNĐ3 million higher than August 5’s level, at VNĐ62 million for buying and VNĐ60.80 million for selling.

At the same time, Doji Group rated up its buying price at VNĐ61.10 million with a sales price of VNĐ61.50 million while Phú Quý Group rated VNĐ60.40 million on the buying side and VNĐ61.50 million on the selling side for each tael of gold.

Bảo Tín Minh Châu Gold Firm in Hà Nội increased rates of each tael to VNĐ60.20 million to buy and VNĐ61.45 million to sell.

Nguyễn Luyến, deputy director of Bảo Tín Minh Châu Gold Firm, said: “The gold market has become active again. On August 5, the firm’s transactions including 60 per cent gold buyers, tripling compared to the previous week.” 

Luyến said gold prices have fluctuated with the development of the COVID-19 pandemic, US-China tensions and the demand from exchange-traded funds (ETF).

She added: “We recommend that people consider carefully before making any gold transactions at this time. They should monitor both the world and the local gold prices to make the right decision.”

Some financial experts said there was an opportunity to invest in gold, but investors should be careful with precious metals because the risk was very high.

Economist Nguyễn Trí Hiếu told Việt Nam News: "Though gold is an investment, people should not put all capital into it nor withdraw their savings to buy the metal. If people have spare cash, they should only use a third to be safe.”

Hiếu also said: “It is not time to 'surf' the market. If buying gold at this time, keep it for about six months and then sell it."

Phan Dũng Khánh, investment director of Maybank Kim Eng Securities, said: “After the policy of depositing gold is no longer profitable in Việt Nam, the demand for gold is weaker. In this case, those who are holding gold or bought the metal at low prices should keep holding. Those who have not bought can still invest in gold but should not be too aggressive.”

In a press release yesterday, SBV said the increase of gold prices was due to the increasing demand for investment in gold as a safe asset in the current period. Many governments and central banks implemented economic stimulus packages to limit the negative impact of the COVID-19 pandemic on the economy.

The central bank said: “The increase in SJC domestic gold price is in line with the increase in international gold price.”

SBV said: “Before, when the gold price increased, people often rushed to buy gold. Now the buying and selling activities are much quieter. Gold sales and purchases have decreased by about 30 per cent compared to the same period last year.”

According to SBV, it would continue to closely monitor the movements of gold prices in the market, if there were any abnormal movements, the central bank will implement solutions and sufficient resources to stabilise the market.

From the beginning of July, prices for each tael of gold increased nearly VNĐ13 million. By August 5, each tael of gold’s prices increased VNĐ17 million, or as much as 40 per cent since the beginning of the year.

At the same time, on the gold exchange Kitco, prices rose six bucks to $2,046 per ounce ($2,465 per tael). Compared to the global market, the price of each tael of gold in Việt Nam was $216 higher. — VNS