Gold prices soar in Vietnam as US-China trade war escalates

A customer examines gold at a DOJI outlet in Vietnam. Photo by VnExpress/Le Chi.

Gold prices in Vietnam jumped 2 percent Saturday after U.S. President Donald Trump slapped another 5 percent tariff on Chinese goods.

By 4 p.m. Saturday afternoon, Vietnam’s largest jewellery company DOJI was selling gold at VND42.6 million ($1,868) per tael (1.2 ounces), up VND850,000 ($37.26) and 2 percent higher compared to the same time the previous day. The buying price was VND42 million ($1,841).

Phu Nhuan Jewelry also raised its prices by around 1.55 percent to sell at VND42,400 ($1,859) and buy at VND41,900 ($1,837) per tael.

By the end of Friday’s session, gold prices in the US rose $27.9 to nearly $1,527 an ounce after President Donald Trump announced on Twitter an additional 5 percent duty on some $550 billion in targeted Chinese goods. Investors also piled onto safe-haven Japanese yen as U.S. stocks, the dollar, and oil prices fell.

About $250 billion of Chinese goods imported into the U.S. already have a 25 percent tariff. This newest increase will raise tariffs to 30 percent beginning October 1, 2019.

The increase in tariffs on Chinese imports follows news earlier on Friday that China will impose $75 billion worth of duties on U.S. goods in a retaliatory move, beginning September 1 and December 15.

Earlier, on August 8, gold prices in Vietnam breached the VND42 million ($1,841) mark for the first time since May 2013, after the U.S. government labelled China a monetary manipulator following Chinese Government letting the yuan fall below the key 7-per-dollar level on August 5.

The dollar index (DXY) fell 0.92 percent Friday, and the JPY strengthened 0.95 percent at 105.45 per dollar.