Vietnam central bank allows gold trading on account and selling gold deposits

The Saigon Jewelry Company Limited (SJC) and 5 other commercial banks (DongA Bank, ACB, Techcombank, Eximbank and Sacombank) are permitted to sell gold in deposits and re-open their international gold trading accounts as a hedge.

The move is expected to help meet local gold thirsty and pull down the local gold premium after various attempts failed to tame domestic gold frenzy, including repeatedly extending gold quota.

As much as 6 tons of gold are prepared to help intervene the market.

As of Oct 6, SJC gold was trading at VND43.75 million/tael and VND44.15 million/tael for bid and ask, respectively, down VND200,000 from Wednesday despite a rise in the global gold price to $1,643/ounce, sending positive signal that the gold premium is reduced.

The local gold prices are expected to ease as the country’s gold supply escalates.

Source Sophie/ News Writer/ StoxPlus

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

Posted by VBN on Oct 7 2011. Filed under Banking-Finance, Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry