The gold buying price fell further in the local market on July 20.
SaigonJewellery JSC bought one tael, or 1.205 ounces, of the state-ownedSJC's gold for 32.6 million VND (1,493 USD), which was a drop of 400,000VND (18.3 USD) from two days ago.
The selling price continued to be 33 million VND (1,511.3 USD) per tael, a three-year low in Vietnam.
BaoTin Minh Chau Gold and Jewellery Company, Doji Gold and Gems Group andPhu Nhuan Jewellery JSC also listed their gold buying price at 32.6million VND (1,493 USD) to 32.9 million VND (1,506 USD) and sellingprice at 33 million VND (1,511 USD) to 33.1 million VND (1,515 USD).
BaoTin Minh Chau Gold and Jewellery Company recorded a larger number ofgold buyers, with a buying/selling ratio of 75/25. Normally, the ratewas about 60/40.
Meanwhile, Phu Nhuan Jewellery JSC said gold prices might fall further due to global price fluctuations.
Onthe global gold trading website Kitco.com, the price of gold slipped5.4 USD per ounce. The site listed one ounce of gold at 1,114 USD or1,383 USD per tael.
Reuters.com also said gold plunged fourpercent, a five-year low, on July 20, as sellers in China, the topconsumer market, sold the metal in a matter of minutes, just asbullion's safe-haven status took a fresh knock from mountingexpectations of a rate hike in the United States.
Nguyen ThanhLong, former director of Saigon Jewellery JSC, said it was normal forthe gold price to fluctuate. He said buyers should be patient and notadopt a herd mentality that makes them sell their gold when prices drop.
Longsaid some Vietnamese people would feel insecure if the prices of golddropped, and would sell their gold. Others would follow the trend. Thesame thing happens when prices rise, and the people flock to buyexpensive things for the highest price.
Long said people shouldnot do the same, and said they should buy gold when the price falls toits lowest and should sell when the prices jump to record highs.
Longsaid the lower prices of gold would not influence the domestic economybecause the State Bank of Vietnam had interfered appropriately andcontrolled the gold market in the last two years.
The gap between the local gold prices and the international prices was 128 USD on July 20.
Goldhas been a popular form of savings in Vietnam for many years. Thesaving of gold as a hedge engaged against uncertainty, pushed domesticprices much higher than the world price.
In October 2012, localprices soared to 48.3 million VND (2,300 USD) when the global prices forone tael were 2,048 USD. (One tael is equal to 1.205 ounce ).
Thecentral bank, started its strong intervention since March 2013. SBVoften told media that it was keeping track of the changes in gold pricesand would intervene, if needed.-VNA
SaigonJewellery JSC bought one tael, or 1.205 ounces, of the state-ownedSJC's gold for 32.6 million VND (1,493 USD), which was a drop of 400,000VND (18.3 USD) from two days ago.
The selling price continued to be 33 million VND (1,511.3 USD) per tael, a three-year low in Vietnam.
BaoTin Minh Chau Gold and Jewellery Company, Doji Gold and Gems Group andPhu Nhuan Jewellery JSC also listed their gold buying price at 32.6million VND (1,493 USD) to 32.9 million VND (1,506 USD) and sellingprice at 33 million VND (1,511 USD) to 33.1 million VND (1,515 USD).
BaoTin Minh Chau Gold and Jewellery Company recorded a larger number ofgold buyers, with a buying/selling ratio of 75/25. Normally, the ratewas about 60/40.
Meanwhile, Phu Nhuan Jewellery JSC said gold prices might fall further due to global price fluctuations.
Onthe global gold trading website Kitco.com, the price of gold slipped5.4 USD per ounce. The site listed one ounce of gold at 1,114 USD or1,383 USD per tael.
Reuters.com also said gold plunged fourpercent, a five-year low, on July 20, as sellers in China, the topconsumer market, sold the metal in a matter of minutes, just asbullion's safe-haven status took a fresh knock from mountingexpectations of a rate hike in the United States.
Nguyen ThanhLong, former director of Saigon Jewellery JSC, said it was normal forthe gold price to fluctuate. He said buyers should be patient and notadopt a herd mentality that makes them sell their gold when prices drop.
Longsaid some Vietnamese people would feel insecure if the prices of golddropped, and would sell their gold. Others would follow the trend. Thesame thing happens when prices rise, and the people flock to buyexpensive things for the highest price.
Long said people shouldnot do the same, and said they should buy gold when the price falls toits lowest and should sell when the prices jump to record highs.
Longsaid the lower prices of gold would not influence the domestic economybecause the State Bank of Vietnam had interfered appropriately andcontrolled the gold market in the last two years.
The gap between the local gold prices and the international prices was 128 USD on July 20.
Goldhas been a popular form of savings in Vietnam for many years. Thesaving of gold as a hedge engaged against uncertainty, pushed domesticprices much higher than the world price.
In October 2012, localprices soared to 48.3 million VND (2,300 USD) when the global prices forone tael were 2,048 USD. (One tael is equal to 1.205 ounce ).
Thecentral bank, started its strong intervention since March 2013. SBVoften told media that it was keeping track of the changes in gold pricesand would intervene, if needed.-VNA
