Viet Nam was the strongest gold jewellery market in Asia last year, according to the World Gold Council’s report about gold trends in 2017 released on Tuesday.
With year-on-year growth of 11 per cent in the fourth quarter of 2017, Viet Nam’s annual demand for jewellery rose by 7 per cent to reach 16.5 tonnes.
This was the strongest year for Vietnamese jewellery demand since 2008, the council said, adding that demand benefited from robust economic growth and continued stock market gains.
Expansion of the jewellery retail network and tentative signs that the Government will begin to liberalise the gold market also boosted the market, the council said in the report.
Globally, gold demand rallied in the closing months of 2017, gaining 6 per cent year-on-year to more than 1,090 tonnes in the four quarter, however full-year demand fell by 7 per cent to 4,070 tonnes.
Full-year gold jewellery demand increased by 4 per cent to 2,135 tonnes - the first year of growth since 2013.
India and China led a 4 per cent recovery in jewellery, although demand remained below historical averages.
Increased use of gold in smartphones and vehicles sparked the first year of growth in technology demand since 2010.
In another report, the council said investors added gold to their portfolios as incomes increased, uncertainty loomed and gold’s price growth continued.
In 2018, gold will be supported by synchronised global economic growth, shrinking central bank balance sheets and rising rates, frothy asset prices and market transparency, efficiency, and access.
The State Bank of Viet Nam is drafting amendements to the Decree 24/2012/ND-CP about gold business management, which could impact the gold market this year.
In the domestic market, demand for gold increased in the days approaching the Tet (Lunar New Year) holiday.
According to Nguyen Thi Cuc, deputy director of Phu Nhuan Jewellery Joint Stock Company, demand for gold products last week increased by 15-20 per cent compared to normal days.
SJC gold was sold at VND36.87 million (US$1,600) per tael on Wednesday in HCM City market.
On Kitco, gold was traded at $1,328. — VNS