The domestic gold price saw its strongest growth in three months last week after beating the milestone of VNĐ42 million (US$1,817.40) per tael.
Gold prices posted by trading firms in the week of December 23-29 gained VNĐ700,000-800,000 per tael, equal to VNĐ0.93-VNĐ1.06 million for an ounce.
Buying and selling prices at Saigon Jewellery Company (SJC) on Sunday were VNĐ42.05 million and VNĐ42.45-42.47 million per tael.
At Bảo Tín Minh Châu Jewellery Company, the buying price was VNĐ42.19 million and the selling price VNĐ42.34 million.
On international markets, spot gold futures advanced 1.67 per cent during the week to trade at $1,510.56 for an ounce, the highest point since early November.
Gold futures have increased by nearly 17.8 per cent in total since the beginning of the year.
Analysts believe the strong growth of gold prices around the word was made by worries about a vulnerable global economy, led by the US and China.
In addition, traders and investors also doubt the certainty of the US-China Phase 1 trade agreement, which is expected to be signed in January.
Such worries have encouraged investors to look for safe alternatives instead of shares and other risky assets, pushing gold demand up.
In the near future, gold prices could go up further and could touch $2,000 an ounce.
Gold still a long-term investment
This year there have been two major increases of gold price in Viet Nam, both connected to the volatility of global markets.
The first wave was in May-June when spot gold’s selling price jumped from VNĐ36.30-36.47 million per tael in late May to about VNĐ39.25 million per tael on June 25 – marking the highest level in three years.
The second wave was in August when spot gold’s selling price jumped by VNĐ2.5 million to more than VNĐ42 million in only a week. Then, the selling price went up steadily to approach VNĐ43 million in early September before falling back to VNĐ41.6-41.8 million prior to last week’s growth.
In 2019, Vietnamese spot gold prices have gained a total of 14 per cent. The rate doubles saving interest rate of 12-month saving term posted by banks and slightly higher than corporate bond yield rates of 12-14 per cent annually.
Compared with corporate bonds, investing in gold is widely considered safer and more stable. However, investors should have a long-term taste instead of trading gold for instant profits.