Gold soars after two US banks go bankrupt

Gold is currently attracting money seeking a safe haven amidst concerns about financial instability among investors worldwide.
Customers buy jewelry at PNJ Gold shop. (Photo: SGGP)

Customers buy jewelry at PNJ Gold shop. (Photo: SGGP)

After two US banks, Silicon Valley Bank (SVB) and Signature Bank (SB), went bankrupt last weekend, the global gold price jumped sharply, pulling up the gold price in Vietnam by VND350,000 per tael compared to the previous weekend on March 13.

At around 4:15 p.m. in Ho Chi Minh City, SJC Company quoted buying and selling prices at VND66.3 million and VND67 million per tael, respectively, up VND300,000 in the buying rate and VND200,000 in the selling rate. At the same time, in Hanoi, PNJ Company bought SJC gold at VND66.35 million and sold it at VND67 million per tael, up VND350,000 in the buying rate and VND200,000 in the selling rate.

In the world gold market, the precious metal closed the week in New York with an increase of US$37 an ounce to $1,868.1 an ounce. On the afternoon of March 13 (Vietnam time), the spot gold price on the Kitco exchange continued to rise strongly to $1,884.18 an ounce, up more than $16 an ounce compared to the closing price in New York. This price, after conversion, is equivalent to around VND53.2 million per tael, lower than the domestic SJC gold price by about VND13.8 million per tael.

International experts said that after the collapse of the two banks, US authorities had declared the protection of depositors' interests in banks. Experts also assessed that the US financial system is much stronger than before. However, investors are concerned about the risk of a financial crisis, making gold a safe haven asset for investors to pour money into.

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