Gold prices kicking up dust
Just within two hours yesterday, SJC gold prices went up and then down five times. The gold price increased further this morning, while the gap between the purchasing and selling prices has widened.
The opening price was VND18.4mil/tael, an increase of VND20,000/tael over later yesterday afternoon, while the selling price was VND18.55mil/tael, up by VND70,000/tael. In general, investors are very cautious about deals when the gaps between purchasing and selling prices are wide, as they mean greater risks for investors.
The gold price SJC announced for Hanoi’s market this morning was VND100,000/tael higher than that for HCM City.
From 2 pm to 4 pm yesterday afternoon, SJC Hanoi five times changed quoted prices. The initial prices were VND18.32-18.42mil/tael (purchasing-selling), and surged by VND20,000/tael one hour later. Some minutes later, the rates were lowered by VND20,00/tael, and half an hour later, the rates were raised by VND20,000/tael before they soared to VND18.38-18.48mil/tael in the late afternoon.
SJC Hanoi Director Luu Quang Dien said that the number of transactions yesterday increased unexpectedly, double those of the first days of the week. Most clients came to SJC shops to buy gold when the prices went down. The volume of gold clients sold to shops was just equal to ¼ of the volume they purchased. Some clients said that they wanted to sell gold to get VND to make deposits at banks, as the deposit interest rates have surged to 19% per annum.
In New York last night, contracts with deliveries in August were signed with prices up by $11.7/oz to $882.9/oz, after the price dropped by nearly $27/oz in Tuesday’s transactions. The reason behind the increase was the unexpected weakening of the dollar against other foreign currencies.
However, in Asia, where goldsmiths are collecting materials for the upcoming jewellery season, prices are going down. Kitco electronic board at 10 am showed the price of $875.40/oz, down by $5/oz over yesterday’s closing price.
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