Gold consumption up 6 pct

By Vien Thong   May 4, 2022 | 06:35 am PT
Gold consumption up 6 pct
Gold bars are seen at a jewelry shop in Ho Chi Minh City on February 10, 2022. Photo by VnExpress/Dinh Van
Vietnam’s gold consumption rose 6 percent year-on-year in the first quarter as inflation concerns pushed people to invest in safer assets.

Gold consumption hit 19.6 tonnes, compared to 18.6 tonnes in the same quarter last year, according to the World Gold Council (WGC).

Demand for gold bars and coins rose 4 percent to 14 tonnes in the period, while demand for jewelry rose 10 percent to 5.6 tonnes.

Andrew Naylor, head of ASEAN and Public Policy at the World Gold Council, said rising demand for gold in Vietnam happened as the dong weakened and inflation rose.

The nation's economic recovery also helped demand to rise, especially during Tet, the Lunar New Year holiday, Valentine’s Day and the God of Wealth Day in February.

Vietnam was the Southeast Asia’s largest gold bullion and coin market last year and among the top 10 globally.

Geopolitical tensions sent global gold prices surged to $2,070 per ounce, near an all-time high, in March.

Louise Street, senior analyst at the World Gold Council, said that the first quarter of 2022 has been a turbulent one, marked by geopolitical crises, supply chain difficulties and surging inflation.

"These global events and market conditions have solidified gold’s status as a safe haven holding, not just for investors but also for retail consumers, thanks to its unique position as a dual-natured asset class."

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