Domestic gold price slips on devaluating dollar

Though world gold prices Monday rose by US$8 per ounce, or around VND200,000 per tael, over last week, domestic gold price cannot keep up with due to US dollar’s devaluation.

Domestic gold price was around VND500,000 a tael lower than their international counterpart’s.

World gold prices rose to $ 1,518 per ounce in the morning before inched down to $1,515 per ounce in the afternoon, while the price offered by Saigon Jewelry Co, Vietnam biggest gold trader, fell from VND37.64 million per tael in the morning to VND37.59 million per tael in the afternoon.

Current gold price was about VND20,000 (US$1) higher than that by the end of last week due to the devaluating of the greenback on both the free market and banks.

On the free market, the price of the greenback was about VND20,400-20,500 a dollar.

Earlier Monday, banks also posted dolar price at VND20,780 per dollar, but the price then plummeted to VND20,755 dong per dollar. The common purchase price of the greenback at banks were at VND20,670-20,680 per dollar.

Experts predicted that for the next few days, the forex rate would continue to decrease due to significant supply of dollars from illegal gold export.

According to news analysts, gold world kept rising since the greenback has hit its three-year low. Experts forecast that the prices of gold and silver can inch down due to massive sale of investors for profits in the short term, but gold price will continue going upward in the long term. – Tuoitre

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