Gold rises to new record high

Local gold on Wednesday hit an all-time high of VND29.49 million per tael, up VND240,000 from the previous day, as global gold markets rallied.

A customer buys gold jewelry at a shop of SJC. The gold price yesterday shot up to a new high of VND29.49 million per tael

The domestic price once jumped to VND29.5 trillion on Wednesday. A tael equals to 1.2 troy ounces. Despite the rally, gold companies said trade was as usual.

Nguyen Cong Tuong, deputy head of the sales department of Saigon Jewelry Holdings Co. (SJC), said demand surged early on Wednesday as the opening price was much lower than the world price, so some companies grasped this opportunity to export gold to enjoy a small margin of about VND50,000 per tael after tax and fee.

However, around an hour later local gold changed direction and moved up to a level almost equaling the global price, so buying energy got muted, he added.

SJC revised the price about 12 times on Wednesday as the yellow inched up non-stop from the morning to 3 p.m., then turned to decline. The gold trading house on Wednesday bought a total of 1,500 taels and sold 2,500 taels.

At Phu Nhuan Jewelry Co. (PNJ), buying and selling were quite balanced. Nguyen Thi Cuc, deputy general director of the company, said her company bought 1,400 gold taels and sold 1,200 taels by 5 p.m. on Wednesday.

Gold was traded on the European market by 6 p.m. on Wednesday at US$1,259.6, causing the local price to surge to over VND29.47 (fee and tax excluded).