Customers buy gold at a store in Hà Nội. Demand for gold in Việt Nam dipped by 9 per cent year-on-year in the second quarter of the year to 12.7 tonnes. — VNA/VNS Photo

Demand for gold dipped by 9 per cent year-on-year in second quarter to 12.7 tonnes, according to the World Gold Council’s quarterly report.

Gold Demand Trends said there was a 5 per cent decrease in bullion and coin demand and 18 per cent fall in jewellery demand.

Bar and coin demand fell from 9.6 tonnes in Q2 last year to 9.1 tonnes and jewellery demand from 4.5 tonnes to 3.7 tonnes.

Shaokai Fan, head of Asia-Pacific (ex-China) & global head of Central Banks at the World Gold Council, said “Similar to other ASEAN markets, consumer demand for gold in Việt Nam declined this quarter. A continued slowdown in the Việt Nam’s economy for two consecutive quarters impacted market sentiment and jewellery demand. Bar and coin demand was also hampered by liquidity restrictions due to the poor performance of equities and real estate.”

Louise Street, senior markets analyst at the World Gold Council, commented "Looking ahead to the second half of 2023, an economic contraction could bring additional upside for gold, further reinforcing its safe-haven asset status.

"In this scenario, gold would be supported by demand from investors and central banks, helping to offset any weakness in jewellery and technology demand triggered by a squeeze on consumer spending." —VNS