Many Vietnamese rushed to sell gold on Thursday after a price hike, causing domestic prices to stay below world prices.
Still the price of gold in Vietnam reached its all-time high of almost VND39.1 million per tael during the day. A tael is equal to 1.21 ounces of gold.
Ton The Vinh Quyen, director of gold trading firm Sacombank-SBJ, said the company bought some 7,200 taels Thursday, compared to sales of between 700 and 800 taels. The sudden increased supply widened the local and world price gap to about VND400,000 per tael (US$19.50).
News website VnExpress quoted Nguyen Thi Cuc, deputy general director of PNJ, as saying the company took in more than 3,000 taels while only sold several hundred taels to customers. "As there was a difference in supply and demand, gold could not surge as fast as it did in the world market," she said.
According to Vietnam's largest gold trader SJC, the domestic market is no longer driven by psychological factors and speculative demand. Many people simply cashed out their gold after price hikes, an official of the company said.
The precious metal set record highs for two consecutive sessions this week before taking a breather on Friday, Reuters reported. Spot gold slightly fell to $1,581.40 an ounce, after a winning run that pushed the price to an all-time high of $1,594.16 on Thursday.
An industry insider said if locals keep selling their gold, it's likely that trading firms will have to stop purchasing because they will not have enough funds.