Trade war pushes gold to 6-year high in Vietnam

By Dat Nguyen August 7, 2019 | 08:32 pm PT

Demand for gold rises as the trade war between the U.S. and China persists. Photo by Pics-xl.

With the trade war spurring demand, gold prices in Vietnam have risen by 4.97 percent this week to their highest levels in six years.

On Thursday morning the country’s largest jewelry company DOJI sold gold at VND42.3 million ($1,826) per tael (1.2 ounces), up 0.71 percent from the previous day, and bought at VND41.5 million ($1,792).

Phu Nhuan Jewelry raised its prices by around 0.85 percent to buy at VND41.5 million ($1,792) and sell at VND42 million ($1,812).

After rising by VND2 million ($86.4) since Monday, the prices breached the VND42 million ($1,812) mark for the first time since May 2013.

Global prices rose by $27 per ounce on Wednesday to over $1,500 for the first time in six years as the ongoing U.S.-China trade tensions escalate with Washington announcing new tariffs on Beijing, boosting the appeal of safe-haven assets.

Goldman Sachs Group Inc. on Wednesday predicted prices would climb to $1,600 in the next six months.

The U.S. government early this week determined that China is a monetary manipulator for the first time since 1994. The U.S. action follows China allowing its yuan to weaken past the key 7-per-dollar level on Monday for the first time in more than a decade.

Beijing later said it would stop buying U.S. agricultural products, inflaming a year-long trade war with the U.S.