Vietnam gold near 1-month low on increased supply

TN News

Email Print

Gold price in Vietnam, Asia's fourth-largest consumer, eased 0.4 percent on Wednesday to the lowest level in nearly a month, following increased supply from the central bank and falls in global prices.

The spot price per tael (37.5 grammes/1.21 ounces) of the SJC-brand dipped to 37.40 million dong ($1,777) at 0139 GMT, the lowest since July 12, from 37.55 million dong on Tuesday, according to the state-run Saigon Jewelry Co .

The Ho Chi Minh City-based firm is the manufacturer of Vietnam's only brand permitted for domestic gold transactions. Gold has long been a popular investment option for Vietnamese.

The State Bank of Vietnam (SBV) tightly controls Vietnam's gold market to try to stabilise dollar/dong exchange rates. It has been selling gold at auctions since late March to sell only to gold shops and banks.

The SBV sold 25,800 taels out of the 26,000 taels at an auction on Tuesday, the 50th so far this year, during which it has sold almost all on offer.

Gold extended losses into a third session on Wednesday, falling to a three-week low after strong US trade data and comments by a Federal Reserve official stoked fears the central bank could start tapering its stimulus from next month.

More Business News