The domestic gold price is currently much higher than the global price, and it is not likely to come down due to high demand while supplies are limited on the local market.
On the world market, the gold price closed at US$1,328.7 an ounce on the last weekend, down US$40 an ounce in comparison with early last week.
Meanwhile, the domestic price decreased by only VND500,000 ($22.2) per tael, or 1.2 ounces, to close at VND32.83-32.84 million ($1,459-1,460) per tael for selling and VND32.76-32.79 million ($1,456-1,457) per tael for buying.
Experts attributed the high price to the imbalance between demand and supply of gold on the local market.
Vietnamese companies exported over 70 tons of the precious metal in the first nine months of this year, while the country has imported only nine tons since late September.
In addition, the volume of gold bought from individuals has been 2-3 times higher than that from companies, causing a shortage of gold.
After selling gold, companies usually try to buy back gold as soon as possible to offset losses so they have raised the price.
Experts also blamed the price hike on depreciations of the dong against the US dollar.
Nguyen Thi Cuc, deputy head of Phu Nhuan Jewelry Company, said the demand for gold has increased while supplies have been limited. Therefore, there have been signs of people buying dollars to import gold since last week, pushing up the dollar price.
In addition, banks have continued to increase their interest rates in gold and the US dollar, thus making their values rise, she added.
