Gold prices fall to 18-month low
Gold prices fall to 18-month low
Gold prices fell to their lowest level in 18 months in Viet Nam on June 10, slipping VND40,000 (US$1.8) per tael from the previous day's rate.
Each tael or 1.205 ounce of the state-owned SJC gold was listed at VND34.73 million ($1,593).
The gold price has been falling in the local market since early this week, and is at its lowest since January 2014.
At the same time, on the global gold trading floor Kitco.com, the price of gold stood at $1,175.9 per ounce or $1,416.9 per tael. According to reuters.com, gold was holding steady above a 11-week low on Wednesday, helped by a softer dollar, but the gains were limited as investors worried over a looming interest rate increase in the United States and continuing outflows from bullion-backed funds.
Thus, each tael of gold in Viet Nam was $176.9 higher than in the world market on June 10.
Phu Nhuan Jewellery Joint Stock Company said they sold more gold on June 10 than on the previous days. The selling/buying rate was 60/40, respectively. The company said gold prices moved unexpectedly even as the interest rate rose in some commercial banks due to increasing credit demand. At the same time, the company said there was a contradictory trend in gold prices between Viet Nam and the world. All these reasons have attracted more investors to the valuable yellow metal as they still consider gold to be "safe mooring" against large financial waves.
Meanwhile, the American dollar rates remained stable in most commercial banks and also in the flea market. The greenback's buying rate was between VND21,740 and VND21,760, and the selling rate was between VND21,830 and VND21,850.
On its website sbv.gov.vn, the central bank kept the inter-bank exchange rate at VND 21,673 per US dollar. With an effective one per cent margin, the ceiling rate was VND21,890 per dollar.
