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The gap between gold prices in Viet Nam and the world narrows to US$124 per tael on Wednesday. — Photo Tigiavang.net
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HA NOI (Biz Hub) — The gap between gold prices in Viet Nam and the outside world narrowed to US$124 per tael for the first time in 12 months on Wednesday when the State Bank of Viet Nam (SBV) sold gold at its 56th
auction.
After 10 credit institutions bought 19,700 taels at VND38.18-38.25 million ($1,818-1,821) per tael, Saigon Jewellery Company (SJC) posted gold prices of 38.35-38.65 million ($1,826-1.840) on its website at 3pm.
On the rise, gold selling prices climbed to $1,424 per ounce, or $1,716 a tael on the kitco.com trading floor, leaving gold prices in Viet Nam $124 per tael higher than global rates.
SBV offered up to 20,000 taels of gold at this auction, the smallest amount since the first auction in March.
Explaining the narrower gap, Do Minh Phu, chairman of DOJI Group and TienPhongBank, which are both involved in the gold market, told local media that SBV had successfully used drastic measures to manage commercial banks' participation in the gold market.
According to Phu, another reason for the drop was that local gold demand fell after commercial banks closed their gold positions.
The fast recovery of gold price on the international market and the stable price for gold in Viet Nam also made the gap narrower.
Since the first SBV gold auction in March the bank has sold nearly 58 tonnes of gold.— VNS