Both gold and the US dollar rebounded strongly on the "street" on Nov. 8after having cooled when the State Bank of Vietnam announced on Nov. 5that it would inject more dollars into the market.
Details of the dollar infusion have yet to be published.
Prices at gold shops in Hanoi and HCM City changed at least seven timesduring the day as the Sai Gon Jewellery Co; the Sacombank Jewellery Co;Bao Tin Minh Chau; Agribank Jewellery Co and Phu Nhuaân Jewellery Coall quoted buy-sell prices of 35.65-35.85 million VND (1,715 USD) pertael, up 1.81 percent or 650,000 VND per tael against Nov. 5.
The gold price had tumbled to below 35 million VND per tael followingthe proposed dollar infusion last weekend. It is now up about 30 percentagainst last year.
The global price for the preciousmetal set a record above 1,398 UAD an ounce - one tael equals 1.2 troyounces – on Nov. 8 before a rebound of the dollar caused prices toretreat, although short-term sentiment remains upbeat.
"The domestic price now is higher than the global price and this islikely to encourage smuggling; make the dollar more expensive and havean adverse effect on the gold price," warned Sacombank Jewellery Cogeneral director Nguyen Ngoc Que Chi.
"All this will combine into an unbreakable cycle.
"If the authorities want to stop the dollar's appreciation, they shouldprovide details of their dollar infusion plan," she said.
The general director noted that although gold demand was not too high, it was higher than supply.
The US dollar continued to climb in value on the black market on Nov. 8to about 20,720-20,950 VND, up 300 VND against the previous day, whilecurrency dealers in both Hanoi and HCM City changed the rate by the houramid fevered trading.
The dollar reached a record 21,050 VND last week.
The central bank official rate remained at 18,932 VND; commercial banks quoted a nominal selling price of 19,500 VND./.
Details of the dollar infusion have yet to be published.
Prices at gold shops in Hanoi and HCM City changed at least seven timesduring the day as the Sai Gon Jewellery Co; the Sacombank Jewellery Co;Bao Tin Minh Chau; Agribank Jewellery Co and Phu Nhuaân Jewellery Coall quoted buy-sell prices of 35.65-35.85 million VND (1,715 USD) pertael, up 1.81 percent or 650,000 VND per tael against Nov. 5.
The gold price had tumbled to below 35 million VND per tael followingthe proposed dollar infusion last weekend. It is now up about 30 percentagainst last year.
The global price for the preciousmetal set a record above 1,398 UAD an ounce - one tael equals 1.2 troyounces – on Nov. 8 before a rebound of the dollar caused prices toretreat, although short-term sentiment remains upbeat.
"The domestic price now is higher than the global price and this islikely to encourage smuggling; make the dollar more expensive and havean adverse effect on the gold price," warned Sacombank Jewellery Cogeneral director Nguyen Ngoc Que Chi.
"All this will combine into an unbreakable cycle.
"If the authorities want to stop the dollar's appreciation, they shouldprovide details of their dollar infusion plan," she said.
The general director noted that although gold demand was not too high, it was higher than supply.
The US dollar continued to climb in value on the black market on Nov. 8to about 20,720-20,950 VND, up 300 VND against the previous day, whilecurrency dealers in both Hanoi and HCM City changed the rate by the houramid fevered trading.
The dollar reached a record 21,050 VND last week.
The central bank official rate remained at 18,932 VND; commercial banks quoted a nominal selling price of 19,500 VND./.
