Jewellery prices in Vientiane rebound slightly
The price of gold jewellery in Vientiane has recovered slightly after many people became nervous about the sharp decline in gold prices since the end of last month.
The current sale price of gold jewellery is more than 5.8 million kip per 15 grammes, a slight increase from the low of almost 5.6 million kip two weeks ago. Although the price has climbed slightly, it is still low compared to the 6.3 million kip gold was worth back in February.
Meanwhile the purchase price sits at 5.6 million kip, up from 5.5 million kip in previous weeks. Vientiane's Talat Sao Shopping Mall is a major precious metal market in Laos, and continues to draw crowds of people who wish to purchase gold jewellery with a view to long term profits.
The volatile gold price in Laos reflects the current fluctuations on the international market. According to the World Gold Council, the gold price yesterday was US$1,475.05 per ounce, recovering slightly from low levels in previous weeks.
Over the last two weeks, gold fell to a low of about US$1,370 per ounce on international markets, down 28 percent from a record high in September 2011 of US$1,920.30 per ounce. This was the biggest drop in 30 years.
According to Xinhua, gold futures on the COMEX division of the New York Mercantile Exchange edged higher last Wednesday in electronic trading, after closing out the regular trading session at a one-week low, finding support after the US Federal Reserve made no changes to its bond-buying programme.
The most active gold contract for June delivery fell US$25.90, or 1.76 percent, to settle at US$1,446.20 per ounce.
Prices had been lower on COMEX after a gauge of manufacturing activity in China showed a decline for March and as investors awaited monetary policy decisions from the European Central Bank, as well as the US Fed.
Shortly after the Fed announcement, prices edged up from the close to US$1,455.10 an ounce in electronic trading on GLOBEX.
The rebound in gold recently was fairly aggressive but there appeared to be a willingness on the part of more than a few bullish traders to step aside on Wednesday, at least until the Fed made their announcement, according to some market analysts.
The small rise in gold prices is a positive signal for gold miners around the world after they kept a close eye on the price of the yellow metal, amid a worrying sharp decline. However, the price continues to fluctuate and investors still need to be careful because of the risks.