Domestic gold prices increased by VND700,000 (USD33.9) per tael to approx VND41 million (USD1,988) per tael this morning, August 3.
Gold set a new record high
The rise in the domestic market shadowed the global gold price, which hit a new record high of USD1,661 an ounce on August 2.
In early morning of August 3, gold companies in HCM City raised prices by VND630,000-VND670,000 (USD30.56-USD32.5) per tael to VND40.7 million-VND40.8 million (USD1,974-USD1,979) per tael compared to the price at the end of August 2.
Hanoi gold prices followed the rise, outstripping HCM City’s prices by VND20,000 (USD0.9) per tael.
High gold prices were expected to entice investors to sell for profits but transactions remained sluggish this morning, according to Tran Nhat Nam from Bao Tin Minh Chau Gold, Silver and Gemstone Company.
Global gold prices continued to shoot up to USD1.661 an ounce due to challenges in lifting the US debt limit.
Meanwhile, the US was warned about Moody’s possibly lowering its credit rating in the next 12-18 months despite the government’s success in agreeing a public debt ceiling. With the credit worthiness of the US economy challenged, gold is being considered a safe investment haven in the current period.
Gold prices spike encourages illegal prospecting
Sharp increases in gold prices have triggered domestic gold fever in Phu Yen Province. Locals in the central province’s Tay Hoa District have begun sifting for gold illicitly in the area of Hon Han.
Le Ngoc Huong, Chairman of Son Thanh Dong Commune People’s Committee in Tay Hoa District said, “We’ve co-ordinated with district authorities to set up inspection groups to tackle this issue, but we’ve yet to succeed in stemming the tide of prospectors.”
