Gold prices take nosedive following two-year high
Domestic gold prices have dropped almost VND2 million per tael (1 tael = 37.5 grammes) on July 7 compared to the peak one day earlier.
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Meanwhile, the respective prices listed by SJC were VND36.6 million – 37.9 million per tael, falling by VND1.85 million and 1.55 million per tael (buying – selling).
Gold is still being traded at around US$1,368 per ounce (1 ounce = 28.35 grammes) in the global market as listed in the morning.
The price drop has proved the effect of the State Bank of Vietnam (SBV)’s message issued at the end of July 6’s trading session on the domestic market.
On July 6, the domestic price exceeded VND39 million per tael, the highest since June 2013, and was tending towards VND40 million.
Later the day, the central bank declared that it would keep a close watch on the gold market and had readied to make an intervention if necessary.
Nguyen Ngoc Canh, Director of the SBV’s Foreign Exchange Management Department, said from the afternoon of July 5 to the next day, the domestic gold price tended to rise at a faster pace and was already higher than the global price.
Such a hike affected the general psychology in the market with some people not selling gold immediately but waiting for the price to grow further, leading to a temporary shortage of gold supply, he noted.
Canh said the volume of traded gold hasn’t jumped sharply, and people have also not flocked to buy gold as they did in the past.
