Gold drops on God of Wealth Day
Gold drops on God of Wealth Day
Domestic gold prices fell by VND100,000-150,000 per tael today, the God of Wealth Day, which falls on the 10th day of the Lunar New Year (February 3).
According to local beliefs, the God of Wealth returns to heaven on the 10th day of lunar year, so Vietnamese often rush to gold stores to buy a piece of the yellow metal in hopes of having luck and prosperity all year round.
Saigon Jewelry Company (SJC) bought gold at VND44 million per tael and sold it at VND44.7 million, both down by VND150,000 against the previous session. Meanwhile, Hanoi-based DOJI Group and Phu Quy Company lowered gold prices by VND100,000 to VND43.95 million and VND45 million for buying and selling, respectively.
At Bao Tin Minh Chau, Thang Long Dragon-brand gold slid VND50,000 to VND44.05 million for buying and VND44.9 million for selling.
This is a surprising market movement as gold prices always edge up sharply due to the strong demand for gold on the God of Wealth Day. Previously, it surged by VND650,000 per tael from January 31 to February 1.
Gold is traded at around US$1,583 an ounce on the world market, equivalent to VND44.51 million per tael, following the Vietnam dong-U.S. dollar exchange rate listed by Vietcombank. One tael is equivalent to 1.2 troy ounces. The global gold price is VND200,000 per tael lower than that of SJC gold.
The State Bank of Vietnam today put its central reference rate at VND23,201 per U.S. dollar, up VND5 from last Friday.
To serve more gold buyers on the God of Wealth Day, local gold companies prepared a wide selection of products. Some even delivered free face masks to customers amid the growing Wuhan coronavirus scare.
According to Bao Tin Minh Chau Company, it offered clients a large volume of Thang Long Dragon gold rings, weighing 0.5 maces to one tael to meet demand, as well as gold God of Wealth statues, lucky charms and jewelry. Vietnamese also consider gold rings to be safe assets.
Meanwhile, Doji Group launched 280,000 new products, up 30% against last year, mainly gold coins and jewelry in the form of a rat.
The Wuhan coronavirus outbreak has sent stock and energy markets worldwide tumbling due to investor fear. However, the gold market has skyrocketed as investors are now seeking to keep gold a safe haven.
