Gold prices in Vietnam on Friday hit the highest level this year as the US dollar became stronger after a devaluation of the dong this week.
The prices peaked at VND28.86 million per tael at noon, compared to around VND27 million early this year, according to Vietnam's largest gold trader, SJC. One tael is equal to 1.2 ounces of gold.
The precious metal began to surge on Thursday, driving many people to take some profits. SJC reported a total trade volume of 1,500 taels during the day.
With prices in other countries remaining stable, local traders said gold hit its peak in Vietnam because of a stronger dollar, the currency which gold prices are based on.
The State Bank of Vietnam set the dong's reference rate 2 percent lower starting Wednesday. Following the downward adjustment, the dollar went up in both official and black markets.
A gold trader told Thanh Nien that some banks have offered to buy the greenback at VND19,500 per dollar, the highest level allowed by the central bank at present.