Gold Price Rise Causes Record Low Sales

Few Vietnamese consumers purchase gold products after signs of gold price's rally growth.(Photo:T.K)

The global gold price continued to rocket early July 12, reaching US$646.6 an ounce late the day, an increase of over US$20 over Tuesday.

Also, gold price in the domestic market restarted its rally growth after two successive days of reduction.

On the same day, Ho Chi Minh City-based gold enterprise Sai Gon Jewelry Company (SJC) priced gold at VND12.63 a tael, increasing VND160,000 over Tuesday.

Accordingly, the domestic gold price was only VND60,000 a tael, lower than the global one.

Recent strong fluctuations of gold prices caused a decline in the purchasing power for the precious metal, resulting in a slum of gold sales in the domestic market.

Both SJC and another local gold trader Kim Hoan Viet Company reported a decrease of over 50% in their sale volumes.

Many experts believed that the sky-rocketing of the global gold price was one of the side-effects of the political uncertainties in India.

Besides, the Export-Import Commercial Bank (Eximbank) speculated previously that international investors were selling gold out at signs of concessions in the Korean Peninsula after North Korea’s brazen missile test last week.

By M.T – Translated by Trong Khuong

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