A sudden drop in the gold price yesterday triggered a buying spree by speculators.
Gold bars stamped by either the Phu Nhuan Jewelry Joint Stock Company or the Saigon Jewelry Company sold for VND19.1 million (US$1,193) per tael, VND200,000 (US$12.5) less than the previous day.
With the global oil price at a near record US$109.42 a barrel and the U.S. Federal Reserve Board cutting short-term interest rates from 3 percent to 2.25 percent, many analysts had forecasted that the gold price would increase. However, prices dropped from US$1,006.6 an ounce to US$995 an ounce.
Ho Chi Minh City saw a considerable increase in the number of gold purchasers as the price declined to VND19.05 million (US$1,190) per tael yesterday. Speculators withdrew money from their bank accounts to buy more gold.
Speculation in the gold market is becoming more common because the local stock market is considered risky and sluggish.
SJC had sell orders of 17,000 taels yesterday, but buy orders of only 2,000 taels.