Gold price reaches all-time high

The global gold price May 16 surged US$5.2 an ounce to top $930.9 an ounce on increased US inflation.

The domestic gold price peaked at a fresh all-time high of VND20.14 million (US$1,119) a tael (1.2 ounces), VND20,000 higher than the previous record on May 13 and VND80,000 – 100,000 lower than the global price.

Saigon Jewelry Joint-Stock Co., Vietnam’s biggest gold dealer, sold gold at VND20.11 million a tael and bought gold at VND20.05 million a tael.

Phu Nhuan Jewelry Co. and Dong A Bank also sold gold at VND20.11 million a tael, an increase of VND50,000 more than the previous day.

The Hanoi-based gold dealer, Bao Tin Minh Chau, said it sold gold at VND20.12 million a tael.

Nguyen Thi Cuc, deputy director of Phu Nhuan Jewelry, said the company’s trading volume on May 16 was 30 percent higher than on May 13.

According to Reuters, the price of the precious metal reached an all-time record as information shows that US inflation last month was higher than expected.

The price of gold for spot delivery rose to $933.65 an ounce, the highest price since March 27 this year. Gold futures for June delivery surged $2.9 to $931.3 an ounce on the Comex division of the New York Mercantile Exchange.

Analyst James Moore at Thebulliondesk.com said gold prices hiked because inflation bounced back due to the overdone quantitative easing policy. Besides, the weak dollar has also boosted the metal.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, announced its reserve has added 1.53 tons of gold.

The global gold price is expected to reach $950 an ounce next week.

Source: SGGP

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