Gold prices take nosedive following two-year high hinh anh 1Customers buy gold at a DOJI shop (Photo: VNA)

Hanoi (VNA) – Domestic gold prices have dropped almost 2 million VND per tael (1 tael = 37.5 grammes) on July 7 compared to the peak one day earlier.

At 10:50 am, DOJI Gold and Gems Group listed the buying and selling prices of gold produced by the Saigon Jewelry Joint Stock Company (SJC) at 36.7 million – 37.7 million VND per tael, down 1.4 million VND per tael from the beginning of the trading session the same day.

Meanwhile, the respective prices listed by SJC were 36.6 million – 37.9 million VND per tael, falling by 1.85 million and 1.55 million VND per tael (buying – selling).

Gold is still being traded at around 1,368 USD per ounce (1 ounce = 28.35 grammes) in the global market as listed in the morning.

The price drop has proved the effect of the State Bank of Vietnam (SBV)’s message issued at the end of July 6’s trading session on the domestic market.

On July 6, the domestic price exceeded 39 million VND per tael, the highest since June 2013, and was tending towards 40 million VND.

Later the day, the central bank declared that it would keep a close watch on the gold market and had readied to make an intervention if necessary.

Nguyen Ngoc Canh, Director of the SBV’s Foreign Exchange Management Department, said from the afternoon of July 5 to the next day, the domestic gold price tended to rise at a faster pace and was already higher than the global price.

Such a hike affected the general psychology in the market with some people not selling gold immediately but waiting for the price to grow further, leading to a temporary shortage of gold supply, he noted.

Canh said the volume of traded gold hasn’t jumped sharply, and people have also not flocked to buy gold as they did in the past.-VNA