Local gold price tumbles after Fed prompts global sell-off
Local gold price tumbles after Fed prompts global sell-off
Domestic gold price yesterday lost an additional 1.08 per cent to fall below the resistance level of VND35 million per tael (US$1,647), which marked a record-low not seen since November 2010.
The falling price followed the drop in world gold prices after the US Federal Reserve's move to curb its bond-buying stimulus prompted a huge sell-off. Spot world gold prices fell to a six-month low of $1,185.10 an ounce earlier yesterday, before it inched-up to $1,192.80 due to bargain-hunting buyers.
SJC gold bars were traded at VND34.9/VND35.13 million ($1,642/1,653) per tael. The drop extended the gap between local and world price to VND4.7 million ($221) per tael. One tael is equivalent to 1.2 ounces.
PNJ reported strong sales from individuals, doubling the volume of two days ago to around 300 taels. However, the daily purchase power remained stable at 500 taels.
Nguyen Cong Tuong, sales manager of Saigon Jewellery Company (SJC), quoted by Vnexpress as saying that many people worried about the down trend continuing, and sold their gold to secure as much as possible.
However, SJC said prices at the State Bank of Viet Nam's auction were improved.
During the 75th auction, 12 credit institutions purchased 14,700 of 15,000 taels of gold offered by SBV at a cost of VND35.01-35.04 million ($1,667-1,668) per tael.
According to SBV, it has sold 1.799 million taels of gold since its first auction in March.
Yesterday, the US dollar was traded at VND21,250.
According to the Committee for Overseas Vietnamese Affairs, some 4.5 million Vietnamese are living in more than 100 nations and territories around the globe.
There are also some 500,000 Vietnamese guest workers.
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