Gold price hits new 'peak' of 62 million VND/tael, Vinh City residents flock to gold shops

At the end of the trading session on the morning of August 7, the gold price skyrocketed to a record high, surpassing the threshold of 62.2 million VND/tael (SJC gold bars). Photo: Thanh Phuc

On the morning of August 7, the listed gold price at major gold shops in Vinh city ranged from 61.75 million VND - 62.05 million VND/tael (selling) and 59.75 million VND - 60.05 million VND/tael (buying) for SJC gold bars; 5.5 million VND - 5.75 million VND/tael (for 9999 jewelry gold). This is considered a record high price for this precious metal.

Faced with the fluctuation of gold prices, on the morning of August 7, many people came to trade at reputable gold shops in Vinh City. Ms. Nguyen Mai Hien, a customer, said: "I read about the record gold price on the internet, and I needed money so I brought the gold to sell."

According to records at gold shops in the city, there are quite a lot of people coming to find out the price of gold but very few customers decide to sell. Ms. Manh My Duyen, owner of a gold and silver business on Tran Phu Street, said: "The price of gold has increased to a record, the highest ever.

In the past two days, the number of customers coming to the gold shop has been high, but they only surveyed the price and did not close the transaction. Partly because before, when the gold price reached the 50 million VND/tael mark, most of them sold their gold to make a profit. Now, with the high gold price, the amount of gold reserves among people is not much, and the gold price is constantly increasing, so there is a mentality of waiting for gold to reach a new price level and not rushing to sell.

Gold prices hit a peak, many people came to survey prices but few people decided to sell, therefore, the volume of buying and selling transactions at gold shops decreased sharply compared to previous price increases. Photo: Thanh Phuc

Meanwhile, on the selling side, there are almost no buyers because the gold price has increased, so very few people buy at this time. In addition, the Covid-19 epidemic is complicated, so weddings are being postponed, the demand for wedding gold and gold jewelry as gifts has decreased sharply.

Currently, the world gold price is at 2,078 USD/ounce, equivalent to 58.3 million VND/tael (converted according to exchange rate), the highest ever but still 4 million VND/tael lower than the domestic gold price. According to experts, the difference between domestic and world prices has widened from 1-2.5 million VND at the end of July to 4 million VND due to the lack of supply at domestic gold shops.

According to many experts, international and domestic gold prices will continue to increase and create many new records, possibly even reaching 3,000 USD next year. Low interest rate environment, unprecedented amount of money printed by central banks, unstable macroeconomic and geopolitical tensions are factors that will continue to support the price increase of this precious metal.