Gold hits six-year high

The price of gold in Vietnam rocketed to VND39 million per tael (1.2 ounces) on June 21, the highest level in the past six years, after global bullion price hit US$1,400 an ounce.
Gold hits six-year high
Particularly, Saigon Jewelry Company listed its gold at VND38.75 million per tael for buying and VND39.05 million per tael for selling at 10 a.m. in Ho Chi Minh City.
At the same time in Hanoi, Doji Group bought gold at VND38.82 million per tael and sold at VND39.02 million per tael. In comparison with the closing price on the previous day, gold rose by VND500,000-VND600,000 per tael.
However, the heavy metal cooled down by 3 p.m. on the same day. Specifically, in HCMC, SJC’s gold was purchased at VND38.35 million per tael and sold at VND38.6 million per tael, down more than VND400,000 per tael compared to gold price in the morning but still up VND200,000 per tael compared to the previous day.
At the same time, Doji Group also lowered SJC’s gold price to VND38.4 million per tael for buying and VND38.7 million per tael for selling, a decrease of VND350,000 per tael compared to that in the morning and an increase of VND250,000 per tael compared to the previous day.
Therefore, the precious metal had strengthened around VND1.5 million per tael within two days. In the first three weeks of June, SJC’s gold had soared by more than VND2.5 million per tael while in the first five months this year, gold had hovered around VND36 million per tael. However, domestic gold price still climbed slower than global one. Currently, the former was still VND300,000-VND500,000 per tael lower than the latter.
Gold traders said that domestic gold price escalated in the past few days due to impacts caused by global gold price. According to international analysts, global bullion price currently stood at the highest level in more than five years, mainly because of the changing monetary policy of the US Federal Reserve. If bullion is able to keep the $1,400-an-ounce mark, it will possibly advance further. 
Some analysts have taken into account of the possibility of gold reaching $1,500-$1,600 an ounce. Domestic analysts also said that when global gold price hits $1,600 an ounce, domestic gold price will cross the VND40-million-per-tael mark this year.

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