Local gold price slides after Tet

Thursday, Feb 06, 2014 11:04

Clients buy gold bullion at a Sacombank branch in Quang Binh province. — VNA/VNS Photo Tran Viet

HA NOI (Biz Hub) — The local gold price lost 0.05 per cent yesterday to settle at VND35.28 million (US$1,663) per tael, in the first trading session since the nine-day Tet holiday.

The decline was driven by flat gold trading on the global market caused by a rebound in emerging-market currencies.

The international gold price steadied above $1,250 per ounce yesterday (one tael is equivalent to 1.2 ounces), while spot gold was trading flat at $1,254.70 per ounce by late afternoon, after dropping as much as 0.2 per cent earlier in the session.

Back home, SJC gold has seen losses of VND20,000 to VND35.28-35.36 million ($1,667). Since the beginning of this year, the local price has hovered around VND35 million ($1,650) per tael in relatively quiet trading. In addition, retailers have been narrowing the gap between buying/selling quotes to encourage gold trading.

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 actions by the State Bank of Viet Nam, which attempted to cut local gold prices to VND34.6-34.7 million ($1,647-1,652) per tael by the end of 2013. This is a reduction of VND12 million ($571) per tael and represents a 24 per cent drop from 2012's level.

Yesterday, the US dollar was traded at VND21,140 (selling) and 21,210 (buying) on the parallel market — down VND10 against the previous week . — VNS

Comments (0)