The New Year began with a soar in world oil prices and a downward trend of the US dollar influencing and raising gold prices. However, analysts consider this only temporary.
Friday was an example of this fluctuation when world gold prices reached a new record of US$869 per ounce in the early morning but suddenly fell to US$856.8 per ounce by late afternoon. Prices then promptly jumped up to close at US$860 per ounce at market close that day
Domestic gold also saw a slight fluctuation in its price, from VND1,663,000 to VND1,669,000 per tael.
Analysts associated this increase to the rocketing in the world oil price since world oil prices recently set a new record of US$100.2 per barrel in the New York Market.
According to the Deutsche Presse Agentur (DPA), Germany national news agency, the world demand has greatly increased while some oil merchandising countries have faced some unstable circumstances, and thus consequently creating a boom in the world oil prices.
A boom in the world oil prices not only created a negative hike in gold prices but also plunged the economies of some developed and developing countries.
According to the Wall Street Journal, the boom was predicted to have a bad effect on the economy of the United States, whereby high inflation in the car industry leads to people tightening their belts, as petrol prices soar.
Additionally, a decrease of 1.5% is occurring to the Gross Domestic Product (GDP) of the poorest countries, they noted.
Another reason for the boom in gold prices came from unofficial news that the United States’ Federal Reserve System would cut down interest of the US dollar.
Domestic experts also worried that the prices would climb up higher in the coming weeks and cause inflation in domestic prices.
Further to waiting on oil supplies from the Dung Quat refinery next year, the government should have a special fund aimed at stabilizing the domestic oil and petrol prices while the world prices remain on their speedy uptrend, suggested Minister of Trade and Industry Vu Huy Hoang.
