Aug 10: Vietnam gold falls to vnd44.7 on gold import quota, dollar prices hit ceiling

Vietnam gold fell back to VND44.7 million a tael ($2,146) after central bank allowed to import 5 tons of gold to “stabilize” the local market and world gold closed off record high Tuesday in New York.

Vietnam gold fell back to VND44.7 million a tael($2,146) after central bank allowed to import 5 tons of gold to “stabilize” the local market and world gold closed off record high Tuesday in New York. Local commercial banks sell dollar at ceiling prices of VND20,824.

As of 11:00 Hanoi time, Sacombank-SJC gold was listed at VND44.35 million/tael and VND44.75 million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tn Minh Chau were listed at VND44.7 million/tael and VND45.3 million/tael for bid and ask, respectively.

SJC in Hanoi was listed at VND44.1 million/tael and VND44.72 million/tael for bid and ask, respectively while SJC in the free market was quoted at VND44.15 million-VND44.65 million a tael for bid and ask respectively.

Gold prices were very volatile in the past few days and have risen nearly 10% since last week on soaring global gold prices, higher demand and local gold shortage.

Global gold prices roared to a lifetime high around $1,778 an ounce struck in Tuesday. The gold fever in the global market was translated into higher demand on local market. More people queued to buy gold in the past few days on risk aversion.

Vietnam gold prices were amplified by “gold shortage” as local companies have exported more than 14 metric tons of gold in June, raising the total export volume in the first half of this year to 24 tons.

The latest gold frenzy sent local gold prices  from a discount to a premium to global prices. As of 11:00 Hanoi time, local gold price was VND44.7 million ($2,146) a tael (37.5 grams or 1.21 troy ounces) or equivalent to $1,781 an ounce, higher than spot gold $1757.6899  at the same time in Asia market.

The State Bank of Vietnam, the country’s central bank,  which controls gold imports, exports and the exchange rate, laid the blamed on “speculators” and allowed local gold traders to import 5 tons of gold to “stabilize” the market but it warned consumers that buying gold now was “risky”. – Stoxplus.com

Tags: vietnam gold, Vietnam gold market, Vietnam gold prices