A person holds gold bars in Hanoi. Photo by VnExpress/Giang Huy
Vietnam gold prices on Thursday hovered around a historic peak achieved two weeks ago as global rates climbed amid warnings of rising inflation.
Saigon Jewelry Company gold bar went up 0.41% to VND122.7 million per tael. A tael equals 37.5 grams or 1.2 ounces.
The last historic peak reached on April 22 was VND124 million.
Gold ring was stable at VND118.1 million per tael.
In Vietnam gold price has surged by nearly 46% since the beginning of the year.
The State Bank of Vietnam, in a report recently submitted to the National Assembly, linked the surge in gold prices to market expectations of further global increases, partly driven by U.S. tariff policies. It also cited a limited supply of gold bars since the beginning of the year as a contributing factor.
The bank did not dismiss the possibility that some businesses or individuals may be taking advantage of market volatility for speculative trading, price manipulation, or profiteering.
To address these issues, the central bank announced plans to revise the current decree governing the gold market to simplify procedures. It also pledged to work with other ministries to intensify inspections and audits of gold trading firms and retail outlets to quickly detect and correct violations or regulatory gaps.
Globally gold climbed on Thursday after the Federal Reserve warned of rising inflation and labor market risks fuelling economic uncertainty, while investors awaited the outcome of the U.S.-China trade talks this weekend, Reuters reported.
Spot gold rose 1.4% to $3,409.76 an ounce. U.S. gold futures firmed 0.7% to $3,416.70.
The non-yielding bullion, a safeguard against political and financial turmoils, thrives in a low-interest-rate environment.
“I think it’s mostly a little drop in front-end yields post Fed, the “wait and see” language was good enough for now and the hotter rhetoric from Trump about trade negotiations with China,” Capital.com’s financial market analyst Kyle Rodda said.
“It taps into two key themes which are slower U.S. growth and de-Dollarisation.”
