Gold driven down by global prices

Domestic gold prices fell yesterday, April 6, to about VND26 million (US$1,368) per tael, driven by falling global prices and efforts by the central bank to intervene in and stabilise the market.

Shops in both Ha Noi and HCM City, including those of Saigon Jewelry Co, Sacombank, Agribank Jewelry Co and Phu Nhuan Jewelry Co, quoted buy/sell prices at VND26.06-26.16 million (around $1,380) per tael yesterday down about 0.6 per cent or VND150,000 from Monday’s price.

Meanwhile, gold on international markets closed off 0.2 per cent to $1,129 per ounce, with one tael equal to 1.2 troy ounces. The precious metal touched $1,133 an ounce yesterday, its highest level since March 8.

“The closing of gold trading floors has reduced speculative trading, bringing market demand closer to real public demand,” said the business director of Sacombank-SBJ, Ton The Vinh Quyen.

Until the State Bank of Viet Nam recently applied measures to stabilise the gold market, domestic prices were often VND600,000-1 million per tale higher than global prices, but they have since gradually moved closer to parity”. In the short term, the market is not likely to change much,” said Viet Nam Gold Traders Association general secretary Dinh Nho Bang. “Gold is in a rather complicated moment.”

Viet Nam News

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