Interest rate on mobilised gold down sharply

Interest rate on mobilised gold has been reduced by over 90% to around 0.2 – 0.5% a year from 5% a year reached two months ago, due to a fairly big amount of gold in stock.

According to the result of a survey by Industry and Commerce Newspaper on the amount of gold in stock in some banks with the advantage of mobilising gold, on average, around 5.5 – 7.5 tonnes of gold is stagnantly stocked. For small banks, the figure is put at around 1.9 – 3.8 tonnes.

According to commercial banks, only around 20% of the amount of their mobilised gold has been lent so far.

The domestic gold price this morning saw a reduction of VND 50,000 a tael as against yesterday.

At 11 am today, SJC gold price listed by the Saigon Jewelry Holding Company in Ho Chi Minh City was put at VND 26.05 million a tael for buying and VND 26.11 million a tael for selling. Meanwhile, the Bao Tin Minh Chau company listed its buying and selling prices at VND 26.04 million a tael and VND 26.12 million a tael respectively.

According to the Wall Street Journal, gold for June delivery ended the New York floor session yesterday with a rise of US$8.8, or 0.8%, to US$1,114.5 an ounce.

Tags: Gold market