Gold prices surged to near 39 million VND, with active trading.
Global gold prices surged amid fears of a war in Syria, driving up domestic gold prices by nearly 1 million dong, reaching close to 39 million dong per ounce.
In the early afternoon of August 28th, in the Asian market, the spot gold price rose by approximately $12 per ounce, reaching $1,427.7 per ounce. Prior to that, yesterday's session saw a significant increase in the price of the precious metal, surpassing the $1,420 per ounce mark due to demand for safe-haven assets amid escalating geopolitical tensions in Syria.
According to forecasts, the US and the West could intervene militarily in Syria tomorrow, citing the Syrian government's use of chemical weapons that killed hundreds of civilians. Therefore, it's easy to understand why the price of gold has risen by double digits today.
Typically, whenever the economy shows signs of inflation or the world political situation is unstable, gold is increasingly sought after by investors as a safe-haven asset.
In the domestic market, following a sharp increase in global gold prices, businesses quickly raised their prices. In the early afternoon, according to Doji Group, SJC gold was traded at 38.65 million VND/ounce (buying) - 38.85 million VND/ounce (selling) for retail transactions and 38.66 million VND/ounce - 38.84 million VND/ounce for wholesale transactions. These prices increased by 720,000 VND/ounce and 640,000 VND/ounce respectively compared to the morning of the same day.
Saigon Jewelry Company adjusted the price upwards by 620,000 VND/ounce, to 38.55 million VND/ounce - 38.85 million VND/ounce.
Due to the sharp increase in domestic prices, the price difference between domestic and international gold bars has widened to 2.35 million VND/ounce, up from 2 million VND/ounce this morning.
Trading activity in the market is quite lively. According to observations at several gold shops on Tran Nhan Tong Street, there is a large number of customers, mostly buying gold. A representative from Bao Tin Minh Chau Company stated that market transactions have increased by approximately 20-30% compared to the past few days. However, most transactions are by small-scale investors or individuals taking advantage of the opportunity to buy and hoard gold due to fears of further price increases. Therefore, the largest purchases are 20-30 taels, while the most common are a few taels.
By over 2 PM, domestic gold prices had cooled down somewhat. Doji Group still quoted prices at 38.35 million VND/ounce - 38.65 million VND/ounce for retail transactions and 38.36 million VND/ounce - 38.64 million VND/ounce for wholesale transactions. Later, prices dropped further to 38.30 million VND/ounce - 38.55 million VND/ounce and 38.32 million VND/ounce - 38.54 million VND/ounce, a decrease of 350,000 VND/ounce and 300,000 VND/ounce respectively compared to the day's peak, but still an increase of 370,000 VND per ounce compared to the beginning of the morning.
Saigon Jewelry Company (SJC) lowered the price to 38.40 million VND/ounce - 38.70 million VND/ounce, but it was still 470,000 VND higher per ounce than at the beginning of the day. The reason domestic gold prices surged sharply and then cooled down quickly was because world gold prices slowed down. At over 2 PM, the increase was more than 8 USD/ounce, trading at 1,424.3 USD/ounce.
The global market continues to focus its attention on the political situation in the Middle East. It is predicted that gold prices will fluctuate sharply upwards if the US and Western countries intervene militarily in Syria.
According to HNM - DP
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