Local gold prices hard to fall much on suppy-demand imbalance

Gold prices in Vietnam regained VND100,000 last weekend to VND32.8million/tael and the bankers expect the gold prices not to fall much “imbalance of supply-demand”, the local Saigon Giai phong Online newspaper reported October 25.

Gold prices in Vietnam regained VND100,000 last weekend to VND32.8million/tael and the bankers expect the gold prices not to fall much “imbalance of supply-demand”, the local Saigon Giai phong Online newspaper reported October 25.

Vietnam has exported over 70 tons of gold, imported only 9 tons year-to-date, while local gold shops sold gold 2-3 times more than they bought, causing a shrink of gold in circulation, the newswire cited.

As a result, many local gold short-sellers had to cover gold now to cut losses as there are no signs of gold price to fall.

Accelerating gold demand and limited supply seem to have encouraged some local firms hoard dollar for illegal gold import during the last week, causing a fever of both gold and dollars, suspected Nguyen Thi Cuc, Deputy General Director of Phu Nhuan Jewelry Co. (PNJ).

The small quota of gold import given by the SBV on late October 17 is inadequate to ease the domestic gold fever as central bank allowed ten local gold-trading firms to import only 100kg-300kg tons of gold each within 3 working days. – Stoxplus.com

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