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Gold market tests investors’ patience
The domestic gold price yesterday afternoon unexpectedly soared as people rushed to purchase gold, but slightly decreased this morning. Domestic prices seem to be moving completely independently of international prices.
Saigon Jewellery Company (SJC) announced the transaction prices for this morning at VND16.55-16.77mil/tael (purchase and sale) in Hanoi. In HCM City, the company quoted the sale price at VND16.75mil/tael. Thang Long trademark gold of Bao Tin Minh Chau Company and PNJ-DAB of Phu Nhuan Jewellery Company both had the quoted prices at VND16.65-16.82mil/tael (purchase and sale) this morning. The price level of Thang Long trademark gold saw the decrease of VND80,000/tael over yesterday afternoon.
The gap between the purchase and sale prices has extended to VND200,000/tael, which is explained as aiming to protect gold trade companies.
The gold price was VND16.4-16.5mil/tael yesterday morning. The low prices prompted people to purchase gold. However, the price unexpectedly soared to VND16.9mil/tael in the afternoon, or VND1.5mil/tael higher than the world’s price.
The noteworthy thing was that the world’s price just increased slightly by $10/oz yesterday afternoon over the morning to $735/oz, but the domestic price soared by VND400,000/tael ($24). In general, for every $100/oz price increase in the world’s market, the domestic price increases by no more than VND150,000/tael.
The gold market proved to be very bustling yesterday. Big gold companies reported double the turnover of ordinary days, while smaller companies said yesterday’s sales were eight times more than ordinary days.
On the world’s market, the gold price fell down further on October 23, slipping under the $700/oz threshold just after the opening of the New York market at 9 pm Hanoi time. However, a few minutes later it recovered, thereafter hovering around $720/oz. At 9 am on October 24, the spot price was at $717.2/oz.
Investment funds trying to sell commodities is considered the main reason for the stirring in the precious metal market.
The crude oil price slightly increased by over $1/oz on October 23 to $68.93/barrel.
VNN
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