Gold prices soar at home and abroad

The domestic gold price soared on February 21 while global prices hit a seven-year peak amid the ongoing novel coronavirus outbreak.

On February 21 afternoon, the price for one tael at Vietnam's biggest gold firm Sai Gon Jewellery Company (SJC) gold was sold at about 45.68 million VND (1,970.2 USD), an increase of 630,000 VND from the previous day.

Similar increases were also recorded at large gold firms Bao Tin Minh Chau and Doji.

Compared to the beginning of the week, prices for each tael of gold have increased more than 1 million VND.

On the global gold exchange Kitco, the precious metal gained nearly 3 percent within the week to reach 1,633.7 USD per ounce (1,968 USD per tael) on the same day.

According to Reuters, gold prices hit their highest level for seven years and also had their best week in more than six months as demand for the safe-haven asset increased after a spike in coronavirus cases.

In the local market, Bao Tin Minh Chau Gold Firm in Hanoi recorded more gold transactions on February 21 with 55 percent of buyers and 45 percent of sellers. The firm said on its website: “It is a good time for investors to trade gold to make a profit.”

However, many gold traders on Ha Trung street, a well-known place that trades gold and foreign currencies in the capital, did not see much difference in the number of customers buying gold.

An employee from Hong Phat gold shop on the street who wished to remain anonymous told Viet Nam News that “they (gold investors) changed a lot. They used to shop for gold whenever the prices were higher.”

“Our business declined much after Tet and also because of the epidemic. No one wants to buy anything,” she added.

The same day, one of the country's biggest gold and jewellery firms Phu Nhuan Jewellery reported a reduction of 32 percent in revenue in January compared to last year.

A press release from the firm blamed the decline on higher gold prices and the coronavirus./.

VNA