Domestic gold prices soar after Fed move
Domestic gold prices soar after Fed move
The sharp rise in global gold prices, triggered by the U.S. Federal Reserve's decision to leave interest rates unchanged with no plans to reduce them anytime soon, drove up domestic prices of the yellow metal today, December 12, the local media reported.
The Fed held interest rates steady on Wednesday and signaled that it is not planning to change anytime soon.
In northern Vietnam, Saigon Jewelry Company (SJC) quoted its gold price at VND41.27 million per tael for buying and VND41.52 million per tael for selling, up VND70,000 per tael for buying and VND80,000 for selling against the previous session. A tael is a Vietnamese unit of gold measurement, which equals to 1.2 troy ounces.
In HCMC, SJC-branded gold prices also jumped by VND70,000 per tael, at VND41.27 million for buying and VND80,000 at VND41.5 million per tael for selling.
Hanoi-based Doji Group bought gold at VND41.33 million per tael, up VND80,000 versus the previous session, and sold it at VND41.8 million per tael, up by VND80,000.
The price of Rong Thang Long gold at Bao Tin Minh Chau Jewelry was VND41.38 million per tael for buying and VND41.83 million per tael for selling, up VND100,000 per tale for buying and selling against the previous session.
Some other local gold trading firms quoted the selling prices of gold at lower than VND41.5 million per tael, but they were still raised by VND150,000 per tael.
The hike in domestic gold prices was attributable to the strong rise in global gold prices thanks to the Fed’s new decision to pause interest rate cuts.
On the global market, the yellow metal was priced at some US$1,474 per ounce, rising by US$7.1 versus the previous session.
Meanwhile, the price of the greenback continued its downward trend on the local market. The U.S. dollar at local commercial banks was priced at VND23,110 for buying and VND23,230 for selling on December 12, dropping by VND10 against the previous session.
The State Bank of Vietnam posted the central reference exchange rate between the dong and the U.S. dollar at VND23,165, down VND2 per dollar.
