Gold up to 40 million VND/tael, record and risk of stronger increase

After several days of fluctuating at over 39 million VND/tael, the domestic gold price this morning (July 19) reached the 40 million VND/tael mark.
Specifically, at 11:00 a.m. on July 19, the domestic gold bar price was listed by Doji Gold and Gemstone Group at: VND 39,800 million/tael (buy) and VND 40,350 million/tael (sell), an increase of VND 650,000 for buying and VND 850,000 for selling compared to the end of the trading session on July 18.
Saigon Jewelry Company listed the price of SJC gold at VND39,700 million/tael (buy) and VND40,020 million/tael (sell), an increase of VND530,000 for buying and VND58,000 for selling compared to the end of the day on July 18.

Gold prices are high.

Meanwhile, Phu Nhuan Jewelry Company (PNJ) traded SJC gold at VND39,700 million/tael for buying and VND40,100 million/tael for selling. Meanwhile, the prices of various types of gold rings and 99.99 gold jewelry on the morning of July 19 were also listed by businesses to have increased sharply.

PNJ traded plain gold rings up to 3.95 million VND/tael for buying and 4.15 million VND/tael for selling, a sharp increase compared to the previous session.
Thus, over the past month, gold price has increased by about 2 million VND/tael and is at the highest level in the past 6 years.
Experts say the sharp increase in domestic gold prices this morning is due to the impact of the increase in world gold prices.
As of early morning on July 19 (Vietnam time), the world spot gold price stood at 1,421 USD/ounce.
The price of gold for August 2019 delivery on the Comex New York floor stood at 1,423 USD/ounce.
Notably, today's gold price is 9.1% higher (118.5 USD/ounce) than at the beginning of 2018. Currently, world gold converted to USD bank price is 39.4 million VND/tael, excluding tax and fees, 100,000 VND lower than domestic gold.
Thus, the world gold price is currently hanging near a 6-year peak despite strong profit-taking pressure.
According to experts, the reason for the sharp increase in gold prices last night and this morning is also due to unpredictable fluctuations in the world.
The US-China trade war has also contributed to keeping gold prices high. Gold increased in the context of US President Donald Trump declaring that the US-China trade war will continue and still threatening to impose more tariffs on Chinese goods. Meanwhile, many businesses have been looking to move factories out of China.
On the other hand, escalating tensions between Iran and some countries in Europe and the US also caused gold prices to rise.
In addition, the possibility of the US Federal Reserve (Fed) cutting interest rates at the end of this month is helping gold reach new heights. Accordingly, many central banks are also entering a race to cut interest rates and introduce new economic stimulus measures in the second half of the year.
Moreover, the sharp fall of the USD is also a factor pushing gold up.
The International Monetary Fund said the US dollar is currently overvalued by about 6-12%, while the euro, Japanese yen and Chinese yuan are seen as being in line with fundamentals.
US President Donald Trump has repeatedly criticized the high US dollar, while China and the European Union (EU) manipulate their currencies and maintain a low euro and yuan.
Previously, the IMF warned that 70% of the global economy would decline and at the worst level in the past 8 years. The IMF cut its growth forecast for 2019 to 3.3%, from 3.5%.
And immediately after the IMF warning, the USD fell in value, helping gold hang near a 6-year peak.