Skyrocketing petrol prices send gold through the roof

Hanoi (VNA) - Domestic gold prices surged on July 21 by more than 300,000 VND to about 19.37 million VND (1,146 USD) per tael. This was blamed on rising petrol and oil prices.

Hanoi-based Bao Tin Minh Chau Jewellery Co and HCM City-based Sai Gon Jewellery Co (SJC) reported that large numbers of clients bought gold onJuly 21 after one week of selling.

SJC on late July 21 listed buy/sell prices at 19.20-19.26 million VND (1,142-1,146 USD) per tael [a tael is equivalent to 1.2 ounces] in Hanoiand HCM City , up 0.84 percent over last Saturday.

Bao Tin Minh Chau, meanwhile, listed prices at 19.20-19.37 million VND(1.140-1.152 USD) per tael.

At Sai Gon Gold Trading Bourse July 21, trading volume reached 333,650 taels, much higher than a previous day's total trading. The opening price was 19 million VND(1,130 USD) per tael, but matched prices were more than19.24 million VND (1,145 USD) per tael. Most of orders were to buy.

The leap in petrol and oil prices is said to be a main factor in the rushfor gold.

After the increase in petrol and oil prices, the US dollar on the parallelmarket on July 21 increased sharply.

Late yesterday, 1USD was worth 17,500 VND, up 3 percent against earlyyesterday morning- and 4.2 per cent against late last week.

Meanwhile, Vietcombank listed USD/VND buying/selling prices at16,735/16,825.

Last week, USD/VND exchange rates on the black market were mostly under orequal to official listed prices.

Prices of imported goods on July 21 still trades under USD/VND exchange rates of about 16,900VND per dollar.-Enditem