Local gold price revives on falling greenback
Local gold price revives on falling greenback
Local gold yesterday bounced back to VND35.13 million (US$1,661) per tael (equivalent to 1.2 ounces) driven by a slight increase in the global price that prompted the US dollar to dip further on the black market.
Gold recovered to $1,213.80 an ounce, up 0.29 per cent on physical buying. Meanwhile, buying and selling prices of SJC gold bars yesterday were between VND35.08 and VND35.13 million (US$1,659 and 1,661) per tael, up VND30,000 per tael or 0.09 per cent against Thursday prices.
Yesterday, the State Bank of Viet Nam chose to avoid normal auctions of gold bars, often held every Friday.
Last week, the central bank announced a decision to continue sales of bullion gold through auctions in an attempt to further stabilise the domestic market and address imbalances between supply and demand.
From March 28 to December 6 this year, SBV has held 73 auctions offering 1.88 million taels, of which it actually sold 1.77 million taels to local credit institutions.
The gold auctions have been used by SBV to battle speculative activity in the market, minimise gold imports and increase foreign reserves.
Gold auctioning is among other levers in a policy set initiated by the central bank more than a year ago to regulate the gold market.
SBV said that the implementation of the policy had significantly improved supply and demand of the precious metal, stablised foreign exchange rates and helped safeguard the legal rights of gold holders.
However, some gold traders have argued the policies have made life more difficult.
Nguyen Thanh Truc, Agribank Jewellery Co's general director told Tri Thuc Tre online newspaper that, "The implementation of the central bank's policy on gold market makes it impossible for us to retain profits as we did in previous years."
"Four or five out of 10 gold companies I know died last year."
Meanwhile, the US dollar on the parallel market yesterday shed VND15 to land between VND21,145 and 21,180. The decrease made up the total loss of the greenback to VND60 in four days.
Vietcombank quoted the US dollar at VND21,075/21,115 and Eximbank VND21,065/21,115.
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