Thanh Thuong
A customer (R) buys gold at Phu Nhuan Jewelry Co. The gap between local and international gold prices narrowed in the first quarter- Photo: Uyen Vien
Political tension in Ukraine pushed the global price of gold up to over US$1,390 an ounce on March 14, the highest in six months, before declining to more than US$1,300 an ounce on March 27. Closing the first quarter, gold stood at US$1,284 per ounce, down over US$100 compared to the record level.
Meanwhile, domestic gold just went up slightly on March 14, constricting the gap between local and international levels to VND1 million per tael, which equals to 1.2 troy ounces.
During the first quarter, the global gold price jumped 5% while the domestic gold price inched up a mere 1.1%. At the end of March, listed gold prices at Saigon Jewelry Co. (SJC) rose by VND400,000 per tael against early this year.
Both local and global prices dropped last week. However, as the global downtrend outpaced that in Vietnam, making a tael of gold VND2.6 million higher in this country than in global markets.
The domestic gold price for selling closed on April 3 at VND35.35 million a tael, slightly up VND20,000 compared to the day before. However, the yellow metal lost VND140,000 a tael against late March, narrowing the gap of prices at home and abroad to some VND2.46 million a tael.
According to representatives of local gold trading firms and banks, gold transactions were sluggish despite falling prices, a trend that was quiet different from previous years when people rushed to buy the precious metal when it prices were down.
SJC reported the lowest transaction compared to the entire last year. The country’s leading gold trading firm based in HCMC sometimes saw its transaction volume of just around 700 taels each day, a whopping drop compared to last year’s lowest volume of 1,500 taels.
Movements on the gold market went in line with expectations of administration agencies, with investors turning their back on the yellow metal while the gap between global and local gold prices reduced.
Banks had stopped all gold lending and mobilization activities, so they were no longer key players that could cause strong fluctuations on the gold market as in previous years.
Speaking to the press at the regular meeting in March, Nguyen Quang Huy, director of the central bank’s foreign exchange department, said that gold bar trading organizations have reported net buying in recent times.
Since early this year, the central bank has not held any gold bar biddings due to low market demand. The agency will intervene in the market in case of strong price fluctuations.
In the coming time, experts said that gold auctions should become a backup plan, meaning that the central bank will only sell gold given supply shortage and vice versa. At present, the gold market should be let to adjust itself.
Đăng ký: VietNam News