Price of gold in Vietnam retreated to around VND42.1 million a tael (1.2 ounces) on July 5 while global price edged up slightly under US$1.620 an ounce.
Saigon Jewelry Company, Vietnam’s biggest gold processer and trader, collected the metal at VND41.95 million and sold at VND42.10 million as of 9.50am Vietnamese time.
Vietnam Export Import Commercial Joint Stock Bank (Eximbank) quoted price at VND42.01 million for buying, and at VND42.06 million for selling at 9.35am Vietnamese time.
Hanoi-based Phu Quy Jewelry Company purchased SJC brand gold at VND42.04 million and sold at VND42.12 million at the same time
The current price of bullion is VND20,000, less than at the end of the day yesterday.
As bullion price surged over VND42 million a tael, highest this month, people were encouraged to sell yesterday. Some jewelry stores in Tran Nhan Tong Street in Hanoi said 70 percent of their customers yesterday sold gold rather than purchase.
On free market in Hanoi, dollars were bought at VND20,890 per dollar and sold at VND20,910 per dollar, an increase of VND10 per dollar over yesterday.
Eximbank traded dollar at VND20,850 and sold at VND20,910 for notes of US$50-100; at VND20,840 and sold at VND20,910 for notes of $5-20 and notes under $5 were bought at VND20,830 and sold at VND20,910 at 11.09am Vietnamese time.
Meanwhile, Vietcombank sold the greenback to VND20,870 per dollar, and maintained purchase at VND20,920 per dollar.
At this exchange rate, global bullion is priced at VND40.8 million, VND1.3 million lower than its Vietnamese counterpart.
Although deputy governor of State Bank of Vietnam, Le Minh Hung, said SJC is the state brand, gold bullion of other brands that have been previously licensed are now still eligible for circulation, though will sell at lower price. For instance, Bao Tin Minh Chai quoted price at VND40.45 million for buying, and at VND40.75 million for selling at 9am Vietnamese time; while Agribank’s AAA bullion collected at VND40.06 million and sold at VND40.09 million this morning.
Regarding public complaint that SJC is now refusing to buy back defective SJC gold bars, Hung said the Central Bank will allow the company to reshape the bars to protect consumer rights.
Internationally, following the U.S Independence Day holiday on July 4, many publications and reports will come out today that will affect the bullion market. The European Central Bank (ECB) will announce the interest rate for July. Some speculate that ECB could lower the interest rate by 0.25 per cent.