Gold prices decline in local market

Gold prices went down 150,000 VND (6.7 USD) per tael or 37.5 gm in the local market on October 20 from last week's rate.

The Sai Gon Jewellery Joint Stock Company sold a tael of gold from the State-owned gold brand SJC for 33.97 million VND (1,519 USD).

The Doji Gold and Gems Group reduced the selling price for a tael of gold from 34.02 million VND (1,522 USD) to 33.94 million VND (1,518 USD) while the Phu Nhuan Jewelry Company (PNJ) sold one tael of gold for 33.92 million VND (1,517 USD).

The Bao Tin Minh Chau Gold and Jewellery Company listed their selling rate for one tael of gold at 33.92 VND (1,517 USD), recording a buying/selling ratio of 60/40 within the day for the valuable metal.

Most of the gold and jewelry companies thought that the local prices of gold were influenced by lower global prices.

According to international media, gold struggled after three days of losses on October 20, hurt by a stronger dollar and fears the Federal Reserve could still raise US interest rates this year.

On the global gold trading website Kitco.com, the price for one ounce of gold was 1,173.20 VND (1,413 USD) per tael.

Thus, the local price for each tael of gold was 104 USD higher than the global gold prices.

Meanwhile, in the local forex market, most commercial banks sold a dollar at around 22,350 VND and 22,370 VND each while the ceiling price of the State Bank was 22,547 VND per dollar. The rates of each dollar were of 10 or 20 VND lower than the previous day's rate.

On September 28, the SBV slashed the interest rate cap on dollar deposits offered by commercial banks to organisations and companies from 0.25 percent to zero percent per year, while the rate for individuals was reduced from 0.75 percent to 0.25 percent.

According to the latest report of Vietcombank Securities Company, the SBV circular would closely control the trading of foreign currency in the local market and help curb speculation and hoarding of the greenback, therefore reducing the demand for foreign currency in the market.

The company said that it did not see any obvious factors that may put significant pressure on exchange rate by the end of 2015.

The company said at the end of the year, demand for foreign currency may rise to meet payment demands and production orders at year end, however, the foreign direct investment disbursements and remittances are expected to continue a positive trend.

In the first nine months of this year, disbursements of FDI reached 9.7 billion USD while the remittances for all of 2015 are expected to reach between 13 billion USD and 14 billion USD.-VNA