Domestic gold prices hit three-month low

The domestic gold price yesterday hit a three-month low to VND27.60 million (US$1,432) per tael (1 tael equals 1.2 ounces).

The fall was mainly driven by the drop in global gold prices and sparse trading at domestic gold shops.

Shops in Ha Noi and HCM City, including Sai Gon Jewellery, Sacombank, Bao Tin Minh Chau Jewellery, Agribank Jewellery and Phu Nhuaân Jewellery stores, quoted buy/sell prices at VND27.60-27.71 million ($1,432-1,437) per tael yesterday, down VND400,000 from Tuesday’s price and VND60,000 from Wednesday’s price.

Viet Nam National Gold, Silver and Gemstones Corporation official Nguyen Huu Dang said both buying and selling were sluggish.

According to SJC Business Department, while the sharp decrease motivated people to buy gold, many remained cautious as the domestic price had been higher than the global price.

A staff member at Bao Tin Minh Chau Jewellery company said the number of people buying gold gradually increased as many customers expected the downward-trend was going to end. However, others sold their gold for cash.

Investor Do Thi The urged others to take a more cautious approach.

“We should be more patient during times like these,” said The.

“I believe the price will slide as concerns over the stability of the financial system recede.”

The adverse link between gold and the US dollar yesterday pushed the dollar on the domestic market to VND19,270, up 0.25 per cent against Wednesday.

Gold prices firmed in Europe yesterday as some Asian buyers were tempted back to the market by the precious metal’s fall. The weaker dollar also helped support prices.

Spot gold was at $1,164.9 an ounce on Kitco.com yesterday afternoon, against $1,162.55 late in New York on Wednesday, recovering from a three-month low of $1,156.9 reached that day. US gold futures for August delivery rose $5.9 to $1,166. — VNS

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