Local gold prices dip to six-week low on weak buying
Local gold prices dip to six-week low on weak buying
Local gold yesterday slightly fell by 0.3 per cent to reach a six-week low of VND35.6 million (US$1,692) per tael, coupled with low trading and narrow interest margins.
In the North, DOJI traded SJC-branded gold bars at VND35.61 million (buying) and VND35.65 million (selling). In the South, the prices were VND35.6/VND35.65 million per tael. One tael is equivalent to 1.2 ounces.
So far this week, local gold has lost 1.1 per cent in value.
World spot gold was flat at $1,302.96 an ounce yesterday as the metal's safe-haven appeal was boosted by weaker equities, Reuters reported. The metal fell to a six-week low of $1,298.29 in the previous session, trading below the $1,300 level briefly before moving back up.
Domestic gold traders claimed that people were selling more gold these days and the purchasing power was rather weak.
A representative of Bao Tin Minh Chau was quoted by Dau Tu (Investment) newspaper as saying that gold was under growing pressure after the US released positive economic data.
In this context, many gold trading companies are turning to jewellery to boost their revenues. However, the market is not bright due to the shortage in supply of gold materials.
"Material supply for gold jewellery is currently falling short and is dependent on the floating sources that cause instability of production. We would like to ask the State Bank of Viet Nam to allow the companies to import gold materials for domestic jewellery production in order to reduce the current domestic shortage," Tran Nhu My, DOJI's Director was quoted as saying by the Dau Tu newspaper.
Earlier this year, a survey by the SBV's HCM City branch revealed that the demand for gold materials among the domestic gold processors and traders was very high. Meanwhile, gold material import was restricted.
The delay in the implementation of competent policies facilitating jewellery processing is believed to have a serious impact on the industry's competitiveness.
One US dollar was exchanged at VND 21,100-21,135 on the parallel market, and at VND21,055-21,115 at commercial banks.
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