Gold prices in Vietnam plunged further to VND26 million a tael on November 12 after the State Bank of Vietnam announced the lifting of a ban on gold imports to stabilize market.
The dollar also fell on the open market from a record high of VND20,000.
Gold was bought at VND25.5 million and sold at VND26 million, VND3.3 million less than the historic high made on November 11.
As the metal price reversed, investors flocked to gold shops to cut their losses.
Some jewelers in Hanoi and Ho Chi Minh City closed their doors or opened later than usual but their buying volumes remained very high.
Phu Nhuan Jewelry’s Hanoi branch said it bought 15,000 taels and sold just around 400 taels.
Do Minh Phu, general director of DOJI Gold and Gems Group, said the central bank’s timely decision has not only lifted the psychological pressure on businesses and people but also prevented volatility in gold prices.
The greenback also cooled after the central bank lifted the ban on gold imports, falling on open market to VND18,900-19,000.
A deputy director of a commercial bank said there was speculation in the dollar as gold prices rose.
On the global market, the dollar’s status depends on the optimism about the US’ economy recovery but it has continued to weaken, especially after a fifth bank declared bankruptcy.
However, in Vietnam, the movement of the greenback could be influenced by the rising demand for imports during the year-end festive season.
The central bank has said its foreign reserves have fallen 25 percent since last year to US$6 billion.