Domestic gold prices fall sharply
Gold prices slumped in the Vietnamese market on September 12 morning. On the Hanoi market, selling price of one tael, or 1.205 ounces, of State-owned SJC’s gold declined by VND190,000 (US$8.3) to US$36.75 million.
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In HCM City and Can Tho city in the south and the central city of Da Nang, one tael of SJC’s gold declined VND250,000 during selling, trading at VND36.73 million. Meanwhile, one tael was being bought at VND36.53 million.
Bao Tin Minh Chau Gold Jewellery Company and Doji Gold and Jewellery Corporation (DOJI) listed their selling prices at VND36.68 million and VND36.70 million, respectively. Buying rates of their gold were listed at VND36.62 million and VND36.60 million, respectively.
On the Asian market, gold is trading at some US$1,325 per ounce, equivalent to VND36.36 million per tael.
On global gold trading website Kitco.com, the price of gold slipped 1.2% per ounce to end at US$1,330.24 per ounce, the largest drop since July 3. On September 8, global gold price hit a yearly peak of US$1,357.54 per ounce.
Thus, the price of one tael of gold in Vietnam is some VND410,000 higher than that on the world market.
Global gold prices declined due to an upward trend in the dollar rate following an uptick in risk appetite fuelled by relief that the Democratic People’s Republic of Korea did not test-fire missiles or conduct nuclear tests over the weekend as some had feared, Reuters reported.
Assets traded primarily in dollars, such as gold, are very sensitive to currency fluctuations. An increase in the dollar rate will lead to gold becoming more expensive compared with other currencies and the demand for gold also decreases, the website said.
Meanwhile, the worst-case scenario due to Hurricane Irma’s impact, the most powerful hurricane ever recorded in the Atlantic, looked to have been avoided, easing concerns of investors about the negative impact of the storm on the US economy.