Gold demand increasing because of high inflation

Nguyen Minh Chau, Director of Bao Tin Minh Chau Gold and Silver Company, said that purchasing power has been very high so far this year. His workshops have been running at full capacity in order to meet the demand.

Chau is not sure that people are purchasing gold nowadays to hoard, but he believes that when prices keep rising, people tend to keep gold to protect their assets from devaluating.

Meanwhile, Dien from SJC Hanoi said that most gold transactions in the last time were purchase deals, while sales just accounted for 1/10 of total transactions.

In the latest news, the gold price unexpectedly bounced back this morning as 24-K gold was traded at VND17.42mil/tael, an increase of VND190,000/tael over the previous trading session.

The unexpected gold price increase on the world’s market was the main reason behind the domestic increase. In the world, gold with spot delivery is now $881.60/oz, up by $15.7/oz over the previous session. Investors and speculators have begun purchasing gold, believing that the downturn period has ended and a period of upswing has begun.