Gold prices fall in Viet Nam following holiday

Hanoi-Viet Nam (May 4)  The price of the State-owned brand of gold, SJC, fell VND370,000 (US$16.5) per tael on May 4, after the four-day holiday in the local market.

The Sai Gon Jewellery Joint Stock Company yesterday sold one tael of SJC gold at VND33.98 million ($1,506).

Unlike Sai Gon Jewellery Joint Stock Company, other gold companies, such as Bao Tin Minh Chau and DOJI, still traded across the holiday; however, they also recoded the falling prices for the yellow metal.

Bao Tin Minh Chau also listed the buying and selling prices of gold at VND33.81 million and VND34.26 million per tael, respectively, a reduction of VND150,000 compared to its last day's closing rate.

DOJI Ha Noi listed the buying and selling prices of gold at VND33.93 million and VND34.03 million per tael, respectively, a reduction of VND220,000 compared to its last day's closing rate.

According to DOJI, the gold market last weekend was quieter than on previous days because most traders had stopped trading to enjoy their holiday. Meanwhile, Bao Tin Minh Chau recorded a higher number of buyers than sellers on May 4, when the prices fell, with 60 per cent of transactions being purchases and 40 per cent being sales. The companies also advised their customers to buy more at this time and hold it in reserve.

At the same time, on the global gold trading floor, the commodity also fell by some $6 per ounce, to be listed at $1,279.9. (One tael is equal to 1.2 ounces). According to reuters.com, gold fell for a second straight session on Wednesday, slipping further away from a 15-month high as the dollar steadied after recent sharp losses and as two Federal Reserve officials talked up US interest rate hikes this year.

The State Bank of Viet Nam listed the reference rate per US dollar at VND21,828 on May 4. The commercial banks were allowed to apply a margin of +/- three per cent to their prices.

On the same day, like most of the other commercial banks, Vietcombank listed its buying and selling rates as unchanged, at VND22,260 and VND22,330, respectively.

Thus, with the Vietcombank rate, each tael of gold in Viet Nam was VND450,000 lower than the global gold price.

Source: VNS