Vietnam’s central bank willing to allow gold imports

Vietnam’s central bank said it’s willing to allow gold imports to help “stabilize” the market after local prices surged to a record.

The State Bank of Vietnam is “watching closely” the market situation and will allow gold imports to prevent speculation and manipulation, according to a statement on its website.

Gold climbed to an all-time high of 44.6 million dong ($2,165) per tael in Hanoi yesterday following the surge in international prices, according to an information service run by Vietnam Posts and Telecommunications.

Gold for December delivery gained as much as 0.7 percent, extending gains to a record $1,724.60 an ounce in New York. The metal traded at $1,724 an ounce at 8:35 a.m. in Melbourne. Spot gold rose to $1,721.78 an ounce, also a record.

In Vietnam, one tael is about 1.2 ounces.

From the beginning of this month, especially on Aug. 8, domestic gold prices increased “suddenly” following the change in the global market, the central bank said in the statement.

“Taking advantage of the situation, speculators in the domestic market had speculated, and manipulated, causing unstable psychology among people even though the amount of gold in the market is still high,” it said.

The State Bank of Vietnam also said its “consistent policy” is to “stabilize” the dong’s value, and “it is risky” for people to buy and hold gold at the moment, according to the statement. – Bloomberg

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