Gold sparkles following risks related to US, European bank collapses

On March 17, the price of gold in Vietnam exceeded VND67 million per tael (1.2 ounces), backed by the increasing world gold price.

At around 3 p.m., PNJ Company quoted the gold buying price at VND66.5 million per tael and the selling price at VND67.2 million per tael, a rise of VND350,000 and VND200,000, respectively, compared to the previous day. Meanwhile, Phu Quy Group in Hanoi bought gold at VND66.05 million per tael and sold gold at VND67.15 million per tael, up VND250,000 and VND150,000, respectively.

The international gold price closed at US$1,919.5 an ounce on March 16 in New York and climbed to $1,938.2 an ounce in the Asian market on March 17, equivalent to around VND55.45 million per tael, which is lower than the SJC gold price by about VND11.75 million per tael.

The global gold price was standing at the highest level in the past month. Experts attribute the rise in the gold price to investors' concerns about the instability in the banking system after two US banks - SVB and First Republic Bank - collapsed and Credit Suisse in Switzerland became illiquid. Despite the Swiss authorities pledging to pump liquidity into Credit Suisse and a group of US banks providing $30 billion to First Republic Bank to prevent its collapse, investors still rush to buy gold as a safe-haven asset against economic uncertainties.

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