The gold buying price fell further in the local market on July 20.

Saigon Jewellery JSC bought one tael, or 1.205 ounces, of the state-owned SJC's gold for 32.6 million VND (1,493 USD), which was a drop of 400,000 VND (18.3 USD) from two days ago.

The selling price continued to be 33 million VND (1,511.3 USD) per tael, a three-year low in Vietnam.

Bao Tin Minh Chau Gold and Jewellery Company, Doji Gold and Gems Group and Phu Nhuan Jewellery JSC also listed their gold buying price at 32.6 million VND (1,493 USD) to 32.9 million VND (1,506 USD) and selling price at 33 million VND (1,511 USD) to 33.1 million VND (1,515 USD).

Bao Tin Minh Chau Gold and Jewellery Company recorded a larger number of gold buyers, with a buying/selling ratio of 75/25. Normally, the rate was about 60/40.

Meanwhile, Phu Nhuan Jewellery JSC said gold prices might fall further due to global price fluctuations.

On the global gold trading website, the price of gold slipped 5.4 USD per ounce. The site listed one ounce of gold at 1,114 USD or 1,383 USD per tael. also said gold plunged four percent, a five-year low, on July 20, as sellers in China, the top consumer market, sold the metal in a matter of minutes, just as bullion's safe-haven status took a fresh knock from mounting expectations of a rate hike in the United States.

Nguyen Thanh Long, former director of Saigon Jewellery JSC, said it was normal for the gold price to fluctuate. He said buyers should be patient and not adopt a herd mentality that makes them sell their gold when prices drop.

Long said some Vietnamese people would feel insecure if the prices of gold dropped, and would sell their gold. Others would follow the trend. The same thing happens when prices rise, and the people flock to buy expensive things for the highest price.

Long said people should not do the same, and said they should buy gold when the price falls to its lowest and should sell when the prices jump to record highs.

Long said the lower prices of gold would not influence the domestic economy because the State Bank of Vietnam had interfered appropriately and controlled the gold market in the last two years.

The gap between the local gold prices and the international prices was 128 USD on July 20.

Gold has been a popular form of savings in Vietnam for many years. The saving of gold as a hedge engaged against uncertainty, pushed domestic prices much higher than the world price.

In October 2012, local prices soared to 48.3 million VND (2,300 USD) when the global prices for one tael were 2,048 USD. (One tael is equal to 1.205 ounce ).

The central bank, started its strong intervention since March 2013. SBV often told media that it was keeping track of the changes in gold prices and would intervene, if needed.-VNA