Domestic gold prices suddently shot up on June 14 to nearly 28.10 million VND (1,478 USD) per tael thanks to an increase in the world gold price.

International investors are betting on another increase as demand for precious metals as investments is very safe and gold is still very strong.

At about 10 am on June 14, the gold price offered by Sai Gon Gold and Silver Company (SJC) on the Ho Chi Minh City bourse stood at 28 million VND per tael (purchase) and 28.06 million VND per tael (sale), up 50,000 VND per tael compared to last week (1 tael equals 1.2 troy ounces).

Gold traded by the SBJ company at 8am on June 14 was priced at 28.03 million VND per tael (purchase) and 28.07 million VND per tael (sale). In Hanoi , the 10am price at Phu Quy SJC stood at 28 million VND per tael (purchase) and 28.06 million VND per tael (sale).

The price of 28 million VND per tael of gold returned late last week, concurrent with a significant increase in the metal price in New York last June 11. Last week was a turbulent week for the gold market: at times the price for the metal rose to 28.35 million VND per tael, then suddently dropped to 27.9 million VND.

Sales in the market recorded a strong increase when the gold prices were high, but quickly returned to normal when the price went down. Gold traders said the general trend in the physical gold market was less vibrant than in the past.

Domestic gold prices are far cheaper than the world price when taking conversion and other charges into account, running about 400,000 VND per tael less than other markets./.