Gold prices drop sharply in the local market in the afternoon of July 16.— Photo dantri.com

HA NOI (Biz Hub) — Gold prices fell sharply in the Vietnamese market in the afternoon of July 16.

One tael, or 1.205 ounces, of State-owned SJC's gold was sold for VND33 million (US$1,511.3), dropping VND1 million ($45.7) from two days ago.

On the global gold trading website Kitco.com, the price of gold slipped $5.4 per ounce. The site listed one ounce at$1,114.42 or $1,378.7 per tael. Reuters.com also said the price slipped on Thursday towards the four-month low reached the previous day as the Federal Reserve's reiteration that US interest rates were likely to rise this year pushed the dollar to a six-week high.

The gap between local gold prices and the international prices was $132 on July 16.

Considering that gold is one of the traditional and most stable investments, the number of buyers visiting gold shops normally increases in Viet Nam when the prices are low. However, according to experts, now is not the right time to buy gold.

According to Nguyen Thi Cuc, Vice Director of Phu Nhuan Jewellery JSC, the usual buying/selling ratio of 70/30 for the company's gold products has changed. In the last two days, her company has seen more sellers than buyers.

Cuc said though the volume of transactions was not large, the imbalance between supply and demand in the market had made the price drop faster.

Other large gold and jewellery companies, such as Doji and SJC, have seen the same imbalance.

The fall in the gold price would help narrow the gap between the domestic and international prices of gold, Cuc was quoted as saying by Vnexpress.vn. The narrowing of the gap will stop once the gap reaches a suitable level, she said.

The same day, an official from the central bank in HCM City said the bank was keeping track of the change in gold prices and could possibly intervene if needed. — VNS