The price of gold in Vietnam dropped for two days straight to VND27.6 million a tael on December 10. The slump occurred despite a rally in global prices as the dollar’s debasement revived investors’ interest in the precious metal as a hedge to protect their wealth.
Most gold shops bought at VND27.5 million and sold at VND27.6 million, VND150,000-300,000 lower than the previous day.
The trading gap between selling and buying prices narrowed to VND100,000 a tael from VND300,000 a tael a few days ago.
According to traders, demand for the metal increased as it fell below the VND28 million mark.
Buying took the upper hand on the bullion market.
Most customers believed it was the right time to buy gold. Some, however, remained wary and waited for prices to fall further. Meanwhile, surfing investors haven’t jumped in the market, said a representative from Hanoi-based gold dealer Bao Tin Minh Chau.
On the SBJ trading floor, trading volume was fairly high with 251,840 taels changing hands at VND24.9-25.56 million a tael by 12:30pm local time. The floor commission was at VND2.8 million.
In Asia, spot gold advanced US$3 an ounce to $1,130.7 an ounce this morning.
Gold futures for February delivery fell as much as $22.5 an ounce, 2 percent, to close at $1,120.9 an ounce on the New York Mercantile Exchange. The metal continued to drop to $1,117, the lowest level since November 13, after the trading sessions.
In the wake of unfavorable information, experts on Wall Street expected the metal to decline for two or three more weeks.
As the US currency strengthened against other major ones while concerns on inflation eased up, gold suffered debasement pressure.
The dollar exchange rate against the euro was at $1.47 in Asia this morning.
The State Bank of Vietnam announced the exchange rate at VND17,941 a dollar, VND1 higher than the previous day. State-owned Vietcombank bought the greenback at VND18,469 and sold at VND18,479.
Crude oil futures for January settlement slid $1.95 a barrel, 2.7 percent, to $70.67.