Gold on Saturday hit an all-time high in Vietnam of VND21.76 million a tael, which translates to US$1,022 an ounce.
Saigon Jewelry Holding Company, Vietnamâs largest gold merchant, announced that the gold price flared to reach VND21.74 million per tael in Ho Chi Minh City and VND21.76 million in Hanoi as of 10 a.m. on Saturday, up VND30,000 from Fridayâs close. A tael is slightly more than 1.2 troy ounces.
Nguyen Ngoc Que Chi, general director of Sacombank Jewelry Company, said holders of the yellow metal were starting to sell their gold to book profits.
She also said that Fridayâs buying volume was three times higher than normal.
In Tokyo, gold hovered a hair below $1,000 an ounce on Friday, consolidating the biggest two-day gain since March after a mix of inflation anxiety, a retreat from risky assets and a technical break stoked renewed investor interest.
The biggest one-day percentage rise since March in the SPDR Gold Trust, the largest gold-backed exchange-traded fund, underscored the fresh burst of investor demand for a safety hedge against a halting economic recovery and the risk that this summer’s stock market rally may be unsustainable.
Spot gold dipped 0.1 percent to $989 by 06:17 GMT, pausing after a five percent gain over the past two days pushed it to a six-month peak of $997.20 on Thursday.
US gold futures for December delivery GCZ9, now at $992.70, came even closer to four digits with a session peak of $999.50 per ounce on Thursday, putting it on course for its biggest weekly gain since late April.
Gold, traditionally a port of refuge during economic storms, broke out of two months of range-bound trade this week, with investors seeking out a fresh play after global share prices reversed course and a rally in other commodities stalled.
âWhen the outlook is uncertain, money tends to flow to the market which is showing a clear trend … in this case precious metals led by gold,â said Shuji Sugata of Mitsubishi Corp Futures & Securities. He said trend-following funds had jumped on the bullion bandwagon in the past few days.
Although it has broken out of its $930-$970 channel, gold has yet to crest the four-digit mark for the first time since February, a mark that has proven repeatedly difficult to crack.
Bullion has failed to hold gains above $985 all four times it has topped that level since setting a record $1,030.80 in March of 2008, and some warn it may do so again.
âIt is quite possible that the gold price will breach the $1,000/oz level in the near term… However, we would not expect the gold price to hold there,â Commonwealth Bank of Australia commodities analyst David Moore said in a report.
âRather, we expect the gold price to trend lower over the period to end-2009 and to continue to drift lower over the course of 2010 as investor interest wanes.â
US December gold futures last approached $1,000 on June 3, when the contract rose to a peak of $993.60 as gold’s traditional inverse relationship with the dollar appeared to reassert itself, but it tumbled the next day in heavy profit-taking.
Source: Thanh Nien, Reuters