SBV may allow gold import to cool down local prices

The State Bank of Vietnam may mull over giving quota for local enterprises to import gold if gold prices run wildly, said Nguyen Quang Huy, Director General of the Department of foreign exchange management .

The State Bank of Vietnam may mull over giving quota for local enterprises to import gold if gold prices run wildly, said Nguyen Quang Huy, Director General of the Department of foreign exchange management .

Currently, local gold prices are closely tracking the rising momentum of global gold prices, which is normal, the official said, adding that the Department is now keeping a close eye on gold market conditions and will intervene in case of any abnormal movements.

Gold prices hit all-time high at VND33million on October 6, while global gold has touched all-time highs in eight out of the last 10 trading sessions.

World gold prices hit a lifetime high of $1.349/oz on concerns over the slow pace of glocal economic recovery, boosting up local gold price, Huy pointed out, adding that local gold shops also attempt to raise gold prices eyeing further global price rocket.

The local gold shops’ move widened the bid-ask spread between local and glocal prices to VND400,000/tael-VND500,000/tael (including import expenses), said the official.

Despite the ascent of the gold price to fresh all-time highs, bullish enthusiasm remains fairly tepid, Huy said ,Huy added. – Stoxplus.com

Tags: vietnam gold, Vietnam gold imports, Vietnam gold market