A jewellery shop in HCM City. — VNS Photo Xuân Hương

HCM CITY — Gold sales increased sharply in HCM City in July, according to the State Bank of Vietnam.

More than 132,450 taels of gold were bought last month, 51 per cent up from the previous month, for VNĐ6.899 trillion (US$696.3 million), while 80,019 taels were sold, up 10 per cent, for VNĐ3.893 trillion ($167.2 million), its HCM City branch reported.

A tael equals 1.22 ounces or 37.5gm. 

According to the central bank, gold prices have risen to new highs since July on the back of global trends. 

Globally, prices topped US$2,000 for an ounce for the first time ever on August 5.

Among the reasons for the rise are the impact of COVID-19 on markets, concerns over tensions between the US and China and stimulus packages to combat the economic impact of the pandemic released by countries, which sparked inflation concerns.

In Việt Nam, SJC gold prices reached a record VNĐ 62 million ($2,663) on August 6. At the end of 2019 the precious metal was selling at VNĐ 43.13 million.

The central bank said as of mid-August global prices (based on free market exchange rates) were VNĐ2.6 million per tael lower than in Việt Nam, down from VNĐ3.7 million late last month but much higher than the VNĐ138,000 at the end of last year.

Despite the volatility in prices, the domestic market saw little speculation, it said.

At 5pm on August 27 the buying and selling prices were $1,940 and $1,941 per ounce on the world market and VNĐ55.3 million and VNĐ56.3 million per tael in Việt Nam. — VNS