Gold Price Down, Gold Sale Down

Saigon Jewelry Gold Co. (SJC) traded gold at VND12.7 million a tael on April 24, a decrease of VND100,000 a tael over Sunday. Contrary to few days ago, the domestic market is witnessing a slump in gold sale.

Contrary to few days ago, the domestic market is witnessing a slump in gold sale.(Photo:T.K)

The domestic gold price is currently VND1.1 – 1.5 million a tael lower than the highest gold price of last week when gold was traded at VND13.8 million a tael in the gold companies and at VND 14.2 million in the free market.

In the global market, gold price closed at US$623.90  an ounce on April 25, inching up US$11 an ounce in comparison with April 24. 

The US dollar exchange rate witnessed a strong decline compared with other currencies (1 US$ = 0.8100 EUR).

Recent remarkable decline in the world gold price and the increased volume of imported gold material by local enterprises are two major reasons for the domestic gold price reduction.

"It was ironical when the gold price rocketed to high levels, people rushed to buy it, but when it has come down, the number of local gold purchasers also decreased," expressed Mr. Nguyen Thanh Truc, Director of the Gold and Gemstones Company under the Vietnam Bank for Agriculture and Rural Development (Agribank).

Le Xuan Nghia, Director of the State Bank of Vietnam's banking strategy Development, said the Vietnamese consumers should make a lucid decision when they decide to invest in gold. As a matter of fact, strong fluctuations of the domestic gold price over these days have resulted in serious losses for many local investors, which were up to hundreds of million VND just in a short period of time, he said.

Source: SGGP – Compiled by Trong Khuong

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