Gold markets become less attractive

Gold bars with well-known trademarks were bought at less than VND20.88 million per tael and sold for below VND20.92 million per tael on the morning of July 3, a drop of some VND20,000 per tael from the previous afternoon.

Major gold, silver and gem companies said gold bar transactions have shown no sign of getting heated again. This has been attributed to many fluctuations in recent transactions and the poor profitability of physical gold in comparison with that of the exchange market.

SJC gold in Hanoi stood at VND20.86 million per tael to sell and VND20.92 million per tael to buy. The corresponding figures for SBJ gold bars transacted at the Saigon Thuong Tin Bank (Sacombank) were VND20.88 million and VND20.92 per tael respectively.

Some Hanoi-based businesses in this field said that the quantity of gold bars being transacted daily amounts to no more than a few hundred taels. On July 2, SJC Hanoi sold slightly more than 300 taels of gold and bought about 150 taels, according to its representative.

Domestic gold prices are now over VND900,000 per tael higher than world gold prices, disregarding taxes and other costs. The gap is increasing as domestic gold prices are declining more slowly than world prices.

Also on the morning of July 3, the State Bank of Vietnam announced the rate of the VND against the US$ being 16,953, up one VND from July 2.