Gold prices in Vietnam shoot up to new highs

Prices of SJC-branded gold bullions in Vietnam have been increasing since early this week, reaching an all-time high of VND74.3 million ($3,057) for bids and VND75.3 million ($3,098) for asks per tael at Saigon Jewelry Co (SJC) on Thursday morning, up VND100,000 from a day earlier.

Prices of the precious metal quoted by other traders like Eximbank and Doji Gold Co. have moved in the same range. Meanwhile, prices of 24-carat gold rings went up VND200,000 ($8.23) from Wednesday to VND61.4-62.4 million ($2,560).

The uptrend of gold prices in Vietnam tracks global movements. Gold closed on Wednesday at the Commodity Exchange Inc. (COMEX) at $2,047.5 per ounce, up from $2,038.4 per ounce a day earlier.

Compared to global levels, gold in Vietnam is VND15 million ($617) higher per tael.

Rising gold prices are attributed to the U.S. Federal Reserve's (Fed) signals to end its tightening cycle and potentially cut rates three times in 2024. The Dollar Index (DXY), which measures the strength of the U.S. dollar, has been sliding after the Fed’s hint. The index has fallen 2.9% over the past three months.

Gold demand in Vietnam seasonally goes up towards the year-end. This custom is clearer this year with deposit interest rates at banks touching new lows. Meanwhile, gold supply is limited as traders in the country are not allowed to import gold for making jewelry.