Gold Drops as Food Prices Soar

The domestic gold price witnessed a sharp fall this morning while the prices of hundreds of food products unexpectedly surged between 10 percent and 30 percent yesterday.

This morning, the selling price of a tael of gold stamped with the mark of the Saigon Jewelry Holding Company declined to VND19.05 million (US$1,201), a decrease of VND250.000 compared to the previous day.

The world gold price went down US$8 an ounce to close at US$989.50.

At present, the difference between the world gold price and the domestic price has narrowed to about VND50,000 a teal.

Taking the advantage of the price drop, many investors in Ho Chi Minh City flocked to jewelry shops to buy gold this morning.

At SJC, the total volume of gold traded reached 12,000 taels at 10:30 a.m. The selling volume was more than 10,000 taels, an increase of 50 percent over the previous day.

Yesterday, at markets and supermarkets in the city, the prices of over 300 food products including meat, fish, vegetables and processed foods unexpectedly soared between 10 percent 30 percent. The prices of many kinds of canned and frozen food manufactured by Vissan and Ha Long increased between 10 percent and 20 percent.

In an effort to curb prices increases, the Coop Mart Chain announced that it will give discounts of 2 to 5 percent for good ranging from cooking oil, seasoning powder to sugar. These goods are sold at prices between 5 percent and 10 percent lower than market prices.  

By Phuong Lan – Translated by Phuong Lan

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