The price of gold on the local market has risen due to possible speculation rather than a supply shortage, according to Nguyen Van Giau, governor of the State Bank of Vietnam (SBV).
The global gold price set new records in the past few days, as did the domestic gold market.
The SBV and the Vietnam Gold Association had kept a close watch on the market in the last few days, and discovered there was no shortage of gold, Giau said, adding that speculation was possibly the cause for the price rise.
Domestic gold prices in August and the first half of September were lower than the world price. But currently the domestic price is 400,000 VND per tael higher than the global price.
The SBV was working with other agencies, including the police and market management, to discover the reasons behind the price hikes.
"With this kind of sensitive item, our policy is not to completely ban gold imports, but gold companies are not permitted to import any volume they want," Giau said.
"We are establishing a management framework for gold trading and imports so that it is suitable with a market economy. We will collect ideas from ministries and industries when we complete it."
Nguyen The Hung, general director of the Vietnam Gold Investment and Trading Company, said the gold price on the domestic market would be equal or even lower than the world price if the SBV permitted gold importers to import gold.
However, the Government has stopped granting permits for gold imports, which indicates that it no longer considers gold an essential item, according to an expert.
In addition, the higher gold price had not affected people's lives since few people conducted their transactions in gold, he said.
The gold price on the domestic market on Sept. 30 morning fell to 31.15 million VND (1,597 USD) per tael (1.2 ounces) after it reached a record of more than 31.3 million VND (1,605 USD) per tael on Sept. 29, following an upward trend in global gold prices.
On Sept. 29, most gold shops in HCM City raised their price by more than 700,000 VND (21.3 USD) over the Sept. 28 price to 31.25-31.36 million VND per tael.
On Sept. 30 morning, SBJ gold was buying and selling at 31.15 million VND (1,597 USD) and 31.18 million VND (1,599 USD) per tael, respectively.
Sai Gon Jewellery Holding Co on Sept. 30 bought the precious metal at 31.14 million VND and sold it at 31.18 million VND per tael, a reduction of 130,000 – 170,000 VND against Sept. 29.
The global gold price on Sept. 29 reached an all-time high of 1,313 USD an ounce on speculation that a global economic recovery would stoke inflation.
In Asia , the metal slightly fell on Sept. 30 morning to 1,309 USD an ounce.
The weakening of the US dollar on the world market has also contributed to the gold price hike, analysts have said./.
The global gold price set new records in the past few days, as did the domestic gold market.
The SBV and the Vietnam Gold Association had kept a close watch on the market in the last few days, and discovered there was no shortage of gold, Giau said, adding that speculation was possibly the cause for the price rise.
Domestic gold prices in August and the first half of September were lower than the world price. But currently the domestic price is 400,000 VND per tael higher than the global price.
The SBV was working with other agencies, including the police and market management, to discover the reasons behind the price hikes.
"With this kind of sensitive item, our policy is not to completely ban gold imports, but gold companies are not permitted to import any volume they want," Giau said.
"We are establishing a management framework for gold trading and imports so that it is suitable with a market economy. We will collect ideas from ministries and industries when we complete it."
Nguyen The Hung, general director of the Vietnam Gold Investment and Trading Company, said the gold price on the domestic market would be equal or even lower than the world price if the SBV permitted gold importers to import gold.
However, the Government has stopped granting permits for gold imports, which indicates that it no longer considers gold an essential item, according to an expert.
In addition, the higher gold price had not affected people's lives since few people conducted their transactions in gold, he said.
The gold price on the domestic market on Sept. 30 morning fell to 31.15 million VND (1,597 USD) per tael (1.2 ounces) after it reached a record of more than 31.3 million VND (1,605 USD) per tael on Sept. 29, following an upward trend in global gold prices.
On Sept. 29, most gold shops in HCM City raised their price by more than 700,000 VND (21.3 USD) over the Sept. 28 price to 31.25-31.36 million VND per tael.
On Sept. 30 morning, SBJ gold was buying and selling at 31.15 million VND (1,597 USD) and 31.18 million VND (1,599 USD) per tael, respectively.
Sai Gon Jewellery Holding Co on Sept. 30 bought the precious metal at 31.14 million VND and sold it at 31.18 million VND per tael, a reduction of 130,000 – 170,000 VND against Sept. 29.
The global gold price on Sept. 29 reached an all-time high of 1,313 USD an ounce on speculation that a global economic recovery would stoke inflation.
In Asia , the metal slightly fell on Sept. 30 morning to 1,309 USD an ounce.
The weakening of the US dollar on the world market has also contributed to the gold price hike, analysts have said./.
