Vietnam gold prices hit record as global rates surge

SJC gold bars rose VND2.8 million ($106) to VND133.4 million ($5,057) per tael, the highest on record, with the buy-sell spread steady at VND1.5 million ($56.8), according to state-run gold trader SJC.

The price of 9999 gold rings reached VND128 million ($4,852) per tael, up VND3 million ($113.7) from before the four-day National Day (September 2) holiday.

A gold tael in Vietnam equals approximately 1.2 troy ounces.

In the unofficial market, SJC bars traded as high as VND135 million ($5,117).

The global rally was driven by a weaker U.S. dollar and growing expectations the Federal Reserve may cut interest rates at its September meeting.

CME’s FedWatch Tool showed market pricing in an 87-percent chance of a 25-basis-point cut.

Vietnamese prices remain sharply above global rates.

Converted at official exchange rates, domestic SJC gold is trading more than VND20 million ($758) per tael higher than international prices.

The government last month issued a decree removing its monopoly on gold bar production and gold imports, but the new rules will not take effect until October 10.

Traders said prices are unlikely to ease before November, when new supply may enter the market.