Gold prices slump in domestic market, rise globally
Gold prices slump in domestic market, rise globally
Domestic consumers, who bought gold on the God of Wealth Day, have incurred losses as local gold prices fell VND130 (US$6.1) per tael on March 2.
Two days ago, demand for gold increased sharply in both Ha Noi and HCM City to mark the God of Wealth Day, the 10th day of the Lunar New Year, which fell on February 28. Many people believe that purchasing gold on that day will bring more luck and money to them.
On the first trading day of March, while global prices of the precious metal spiked in the world market, they slid in Viet Nam.
In Ha Noi, the value of each tael of the state-owned gold brand SJC was reduced by VND130,000 ($6.1) to close at VND35.58 million ($1,670) at the Saigon Jewellery Joint Stock Company.
On the global gold trading floor kitco.com, gold prices rose by $6.7 to stand at $1,220.4 per ounce or $1,470.5 per tael.
According to Reuters.com, gold prices rose to their highest level in nearly two weeks on Monday, backed by firm Chinese demand after a weekend interest rate cut in China was aimed at shoring up the economy, which some analysts said could also benefit the bullion.
Thus, each tael of gold in Viet Nam was priced $200 higher than the world market rates.
The U.S. dollar rates stayed unchanged at most commercial banks. Vietcombank bought each U.S. dollar for VND21,335 and sold it for VND21,385, respectively.
On its website sbv.gov.vn, the State Bank of Viet Nam (SBV) maintained the U.S. dollar's exchange rate at the June 19 rate of VND21,246. The SBV also set the U.S. dollar rate ceiling at VND21,458.50, which commercial banks are allowed to apply as an effective exchange rate with a 1 per cent margin.
