Domestic gold prices have fallen to a four-year-and-a-half low while the exchange rate between the dong and the greenback has remained stable.
HCMC-based Saigon Jewelry Company (SJC) yesterday quoted gold at VND34.7 million for buying and VND34.76 million for selling per tael, down by VND10,000 a tael versus Monday and VND50,000 a tael against late last week.
The yellow metal dipped to its lowest price since October 25, 2010, losing 1% against early this year and 2.95% compared to this year’s high (VND35.82 million on January 21).
According to kitco.com, the global gold price hit an 11-week low of US$1,175.5 an ounce on June 9. Given Vietcombank’s exchange rate at VND21,840 per dollar, domestic gold was VND3.81 million per tael higher than the world price.
Domestic prices have kept declining over the past time due to low local demand and dropping gold world prices.
According to the World Gold Council, the total gold bar and coin demand of Vietnam was 14.2 tons in the first quarter of this year, down 12% year-on-year, while jewelry demand improved 10% to 4.1 tons. Vietnam’s consumer demand was 18.3 tons, falling 7% year-on-year.
The exchange rate between the dong and the greenback has been stabilized in the past three weeks. Local banks sold a U.S. dollar at VND21,840-21,845 on June 9.
(Saigon Times2015/06/11)
