In the recent days, the gold prices in the international market have risen sharply; the domestic gold prices have been going up in line with that trend in the international market. Mr. Nguyen Hoang Minh, Deputy Director of the State Bank of Vietnam (SBV) branch in Ho Chi Minh City (HCMC) has granted an interview to the correspondents about this issue. Below is the full text of the interview.
Question (Q): What are the reasons for the increase in the gold prices in both domestic and international markets over the recent time?
Answer (A): In the recent days, the gold prices in the international market have increased remarkably, from 1,807 USD/oz on July 20, 2020 to 1,888 USD/oz on July 23, 2020, which was the highest level over the last nine years. On July 23, 2020 only, the international gold price rose by 39 USD/oz, which was equivalent to an increase of 2.1%. The main reason for the high increases in gold prices is the increasingly high number of Covid-19 cases in many countries. It is expected by many investors that Covid-19 affected nations could apply more stimulus packages, especially after the EU’s approval of the “historic” recovery package of €750 billion. The USD has depreciated to the lowest level during the last four months. Moreover, on July 23, 2020, the tense developments in the US-China relations also led to the further sharp increases of gold prices.
Q: Could you make an assessment of the trading developments in the domestic gold market?
A: In the domestic gold market, the prices of SJC gold bullion have increased in line with the international gold prices. At some moments, the selling price of SJC gold bullions was raised to VND 54.9 million per tael on July 23, 2020 afternoon. However, the domestic gold prices have been on an upward trend in line with the increase of the international gold prices; the number of transactions is at medium level, there has been no phenomenon of people rushing to purchase gold. In contrast, there have been quite a number of people selling gold when the gold prices rose high.
Q: Could you make a guess of the trend of the international gold prices in the coming time?
A: According to many experts, in the coming time, the international gold prices would continue to experience complicated developments, mainly depending on the situations of the Covid-19 pandemic and the developments of the US-China relations. Therefore, the domestic gold prices may increase or decrease in line with the international gold prices. Generally, it is shared by many experts that the gold prices at this time still pose many risks.
Q: Thank you!
Le Hang