Local gold price drops to six-week low on global fall

Local gold yesterday fell by 0.3 per cent to reach a six-week low of VND35.38 million (US$1,676) per tael, which was driven by a further drop in global gold prices.

In March, local gold bullion lost 3 per cent or over VND1 million ($47.6) per tael. One tael is equivalent to 1.2 ounces.


In the North, DOJI traded SJC bullions, the state brand and the most prestigious gold brand in the local market, were traded at VND35.38 million (buying) and VND35.43 million (selling), down VND130,000 per tael against Monday's trading. In the South, the prices were VND35.38/35.4 million per tael.

Trading volume and interest margins were getting narrower.

World gold yesterday fell below US$1,280 per ounce and nearly hit a seven-week low as investors chose to pull their money out of bullion backed exchange-traded funds in favour of riskier assets, such as equities.

Gold expert Nguyen Tri Hieu earlier forecast that in the mid-long term this year, local gold will continue to follow a downward trend in line with world gold.

Last year marked the end of a 12-year bullish run of Viet Nam's gold, which plunged 24 per cent year-on-year towards the year end. World gold last year lost 28 per cent.

In another attempt to manage the gold market and prevent smuggling, the State of Viet Nam on Monday ruled that Vietnamese and foreign individuals would be banned from carrying gold bars and gold raw materials when leaving or entering Viet Nam from May 15.

However, the central bank allows the carrying of gold jewellery and fine art made of gold provided the total weight of these objects is not more than 300 grams (10.5 oz). In case travellers bring more than the permitted amount, they must declare it to customs officials