State Bank’s decision pulls down gold price

The domestic gold price dropped by nearly 1 million VND per tael to 37.3 million VND per tael by 1:30 pm on Nov. 9 just after the State Bank of Vietnam announced it allows gold imports with appropriate volumes.

The decision was made in the context that the domestic gold price has been rising at a higher rate than the global price in recent days, peaking at 38.2 million VND (over 1,900 USD) per tael at 11:00 am on Nov. 9. O ne tael equals 1.2 troy ounces.

“The domestic price now is higher than the global price and this is likely to encourage smuggling, make the dollar more expensive and have an adverse effect on the gold price,” warned Sacombank Jewellery Co general director Nguyen Ngoc Que Chi.

The gold price has been climbing since early October when it reached 32.95 million USD per tael on October 6.

The US dollar also gained 40 VND per USD on Nov. 9 compared to just the day before. The rate on the unofficial market was 21,000 (buying)-21,400 VND (selling) per USD while the rate at banks stayed at 19,480-19,500 VND per USD.

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

Posted by VBN on Nov 9 2010. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry