Gold prices leap after Lunar New Year

February 05, 2017 | 20:07

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After Tet holiday, the domestic price of gold experienced sharp increase in line with global trends.

As reported by newspaper ngaynay.vn, global prices went up by $26 per ounce between January 25 and February 2 (from $1,190 per ounce to $1,216 per ounce), equivalent to VND33.25 million ($1468) per tael.

On February 2, Saigon Jewelry Holding Co. (SJC) was buying gold at VND37.83 million per tael ($1700), or 1.2 ounces, VND880,000 ($39) per tael more than on the last trading day before the Tet holiday (January 25), when gold was being traded between VND36.55 million ($1,613) and VND36.95 million ($1631) (buying and selling prices) per tael. The difference between the purchase and selling price as listed at SJC was VND400,000 per tael ($17.7), and at gold stores it might be around VND350,000 ($15.5).

The rise might also be explained by an increase in the exchange rate. On February 2, Vietcombank listed the rate at VND22,620 and VND22,630 for buying and selling, respectively, which were VND60 higher than the day before the holiday. Thus, the conversion for global gold prices also increases.

After the first meeting of the US Federal Reserve under new president Donald Trump, the interest rates remained stable. Hence, experts estimated that gold prices will continue to rise as gold is considered as a good store of value.

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