The price of gold on the local market has risen due to possiblespeculation 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 themarket in the last few days, and discovered there was no shortage ofgold, Giau said, adding that speculation was possibly the cause for theprice rise.
Domestic gold prices in August and thefirst half of September were lower than the world price. But currentlythe domestic price is 400,000 VND per tael higher than the global price.
The SBV was working with other agencies, includingthe police and market management, to discover the reasons behind theprice hikes.
"With this kind of sensitive item, ourpolicy is not to completely ban gold imports, but gold companies are notpermitted to import any volume they want," Giau said.
"We are establishing a management framework for gold trading andimports so that it is suitable with a market economy. We will collectideas from ministries and industries when we complete it."
Nguyen The Hung, general director of the Vietnam Gold Investment andTrading Company, said the gold price on the domestic market would beequal or even lower than the world price if the SBV permitted goldimporters to import gold.
However, the Governmenthas stopped granting permits for gold imports, which indicates that itno longer considers gold an essential item, according to an expert.
In addition, the higher gold price had not affected people's livessince few people conducted their transactions in gold, he said.
The gold price on the domestic market on Sept. 30 morning fell to31.15 million VND (1,597 USD) per tael (1.2 ounces) after it reached arecord of more than 31.3 million VND (1,605 USD) per tael on Sept. 29,following an upward trend in global gold prices.
OnSept. 29, most gold shops in HCM City raised their price by morethan 700,000 VND (21.3 USD) over the Sept. 28 price to 31.25-31.36million VND per tael.
On Sept. 30 morning, SBJ goldwas buying and selling at 31.15 million VND (1,597 USD) and 31.18million VND (1,599 USD) per tael, respectively.
SaiGon Jewellery Holding Co on Sept. 30 bought the precious metal at 31.14million VND and sold it at 31.18 million VND per tael, a reduction of130,000 – 170,000 VND against Sept. 29.
The globalgold price on Sept. 29 reached an all-time high of 1,313 USD an ounce onspeculation 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 themarket in the last few days, and discovered there was no shortage ofgold, Giau said, adding that speculation was possibly the cause for theprice rise.
Domestic gold prices in August and thefirst half of September were lower than the world price. But currentlythe domestic price is 400,000 VND per tael higher than the global price.
The SBV was working with other agencies, includingthe police and market management, to discover the reasons behind theprice hikes.
"With this kind of sensitive item, ourpolicy is not to completely ban gold imports, but gold companies are notpermitted to import any volume they want," Giau said.
"We are establishing a management framework for gold trading andimports so that it is suitable with a market economy. We will collectideas from ministries and industries when we complete it."
Nguyen The Hung, general director of the Vietnam Gold Investment andTrading Company, said the gold price on the domestic market would beequal or even lower than the world price if the SBV permitted goldimporters to import gold.
However, the Governmenthas stopped granting permits for gold imports, which indicates that itno longer considers gold an essential item, according to an expert.
In addition, the higher gold price had not affected people's livessince few people conducted their transactions in gold, he said.
The gold price on the domestic market on Sept. 30 morning fell to31.15 million VND (1,597 USD) per tael (1.2 ounces) after it reached arecord of more than 31.3 million VND (1,605 USD) per tael on Sept. 29,following an upward trend in global gold prices.
OnSept. 29, most gold shops in HCM City raised their price by morethan 700,000 VND (21.3 USD) over the Sept. 28 price to 31.25-31.36million VND per tael.
On Sept. 30 morning, SBJ goldwas buying and selling at 31.15 million VND (1,597 USD) and 31.18million VND (1,599 USD) per tael, respectively.
SaiGon Jewellery Holding Co on Sept. 30 bought the precious metal at 31.14million VND and sold it at 31.18 million VND per tael, a reduction of130,000 – 170,000 VND against Sept. 29.
The globalgold price on Sept. 29 reached an all-time high of 1,313 USD an ounce onspeculation 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./.
