People buy gold products at a store of Agribank. The price of local gold yesterday rebounded by 0.8 per cent to VND35.25 million per tael, driven by an improvement in global gold prices. — VNA/VNS Photo Tran Viet

HA NOI (Biz Hub)— The price of local gold yesterday rebounded by 0.8 per cent to VND35.25 million (US$1,676) per tael, driven by an improvement in global gold prices.

The global price of gold improved as weak equity markets burnished the yellow metal's safe-haven appeal.

Back home, SJC gold gained VND300,000 per tael (US$14.3) to end at VND35.1-35.25 million ($1,671-1,676), its highest closing price in six days. One tael is equivalent to 1.2 ounces.

Since the beginning of this year, the local price has hovered around VND35 million ($1,666) per tael in quiet trading sessions. In addition, retailers kept narrowing the gap between buying/selling quotes to encourage gold purchases.

On , a commodities-tracking website, the price of gold was around $1,257.90 per ounce, nearing its highest level in seven weeks. Reuters news agency reported that gold's move in the previous session was initially prompted by falling equities and news from India, a leading consumer of gold, where the leader of the country's ruling party asked the government to review its tough import restrictions on gold.

Local gold prices plunged 28 per cent in 2013, ending a 12-year bull run and tarnishing the metal's appeal as a hedge against inflation. The fall in local gold prices was partly due to the State Bank of Viet Nam's actions, which included gold auctions.

The central bank sold 1.82 million taels (69.9 tonnes) of gold bars through 76 auctions in 2013. The attempt was to cut local gold prices to VND34.6-34.7 million ($1,647-1,652) per tael by the end of 2013, down VND12 million ($571) per tael, or 24 per cent lower from 2012's level.

Some of the auctioned gold went to credit institutions to help them close their outstanding gold deposits. Another portion of the auctioned gold went to gold firms, which sought to meet market demand.

The central bank plans to continue conducting the gold auctions this year in an attempt to stabilise the domestic market and address the imbalances between supply and demand.

The US dollar traded at VND21,100-21,110 in the black market, down VND20 from Thursday, while commercial banks kept the exchange value of the dollar unchanged at VND21,060-21,100. — VNS