Vietnam gold prices hit record high as global rally drives demand

State-run Saigon Jewelry Company (SJC) raised its selling price of gold bars by VND1.5 million (US$56.8) to VND136.5 million ($5,167) per tael, while buying prices rose to VND134.5 million ($5,091).

Prices of 9999 gold rings also climbed, with SJC quoting a selling price of VND132.4 million ($5,012) and buying price of VND129.7 million ($4,909). 

Other major retailers matched SJC's gold bar selling price, while narrowing the bid-ask spread to VND1 million ($38) per tael.

The global spot price rose sharply to $3,830 per ounce late Monday, equivalent to VND122.14 million ($4,623) per tael at official exchange rates — leaving SJC gold bars trading at a premium of VND14.36 million ($543). 

Gold rings were priced VND10.26 million ($388) above international levels.

Gold prices have rallied globally on expectations that the U.S. Federal Reserve could begin cutting interest rates. 

CME Group's FedWatch Tool on Monday showed markets pricing in a 65-percent chance of a rate cut at the Fed's December meeting.

Additional support has come from central bank purchases, which could exceed 900 tonnes this year, and inflows into gold-backed exchange-traded funds.