The rally in gold continued in the Vietnamese trading market on Tuesday, June 25 with the price hitting a fresh, more-than-two-year high in Vietnam and a six-year high in the world on the back of the weakening US dollar amid the FED’s expectations to cut rates, adding to geopolitical tensions.
In the early morning, at DOJI Jewelry chain in Hanoi, gold hit VND39 million/39.3 million per ounce ($1,695.65/1,708.7), which is VND670,000 ($29.13) higher than yesterday.
Gold shines as the dollar is falling due to geopolitical tensions. Photo: Pinterest
In Ho Chi Minh City, at some jewellery stores, such as PNJ, the yellow metal rose to VND38.7 million/39.35 million ($1,682.6/1,710.87) per ounce. This is the highest level since 2017.
These safe-haven gains came on the back of the renewed weakness of the US dollar. Gold jumped to $1.438.6 per troy ounce in the world, breaking the highest price since May 2013. The dollar index, which tracks the greenback against a basket of peers, fell by 0.1 per cent on Tuesday, according to FT statistics.
Adding to the tension, US President Donald Trump said the US would impose some sanctions on Iran, which also deepens global economic and political turbulence. This clearly spurs a huge demand among investors for haven assets, such as gold, real estate, or even electronic money.
When asked, a jewellery store’s sales assistant in Hanoi told VIR that despite the skyrocketing prices, the gold market is still bustling and attracts a lot of customers willing to trade. “I think gold will continue glittering in the coming days,” she said.