Gold prices edge down, investors wary

Gold prices fell by US$3 an ounce on May 26 to US$949, causing a weakening in Vietnamese prices.

The Sai Gon Jewelry Holding Company (SJC) sold the metal at 20.71 million a tael, VND40,000 to 50,000 lower than the previous day. A tael equals 37.5 grams.

Jewelry shops in An Dong Market in District 5 and Ben Thanh Market in District 1 saw more people selling rather than buying gold.

Many investors said they would not buy now since they expect a correction because prices have run up so much.

Many economists predict the precious metal to top the $1,000 mark because the Russian and Chinese central banks are continuing to buy it. Besides gold output in South Africa, a major producer, fell 10 percent in the first quarter.

In related news, the Export and Import bank (Eximbank) has increased the interest rate on gold deposits to 4.5 percent per annum for a three-month term, the highest ever it has offered.

Viet A bank is offering 3.4 percent for three months, 3.9 percent for nine months, and 4 percent for 18 months.

By L.M.Thi – Translated by H.Mien

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