After the US Federal Reserve (FED) raised interest rates by 0.5 percentage points to 4.25-4.5 percent per annum - the highest level in the past 15 years, the global gold price plunged, causing the gold price in Vietnam to devalue by VND500,000 per tael on December 15.
After declining by VND1.3 million per tael the previous day, the price of gold in Vietnam continued to drop by VND1-1.4 million per tael to VND63.5 million per tael on September 28, following the losing momentum of the global gold price.
The price of SJC gold in Vietnam made a U-turn, climbing to more than VND66 million per tael (1.2 ounces) while the global gold price moved inversely, so SJC gold is currently nearly VND18 million per tael higher than the global gold price.
Mr. Huynh Trung Khanh, Vice Chairman of the Vietnam Gold Trading Association, said that because the gap between domestic and world gold prices is too high, SJC-gold buyers bear many risks, especially when domestic and international gold prices have not been connected yet.
While the price of SJC gold on July 15 is more than VND20 million per tael (1.2 ounces) higher than the global gold price, other 9999-gold rings are currently VND15-16 million per tael lower than that of SJC gold bars which are also 9999 gold.
The price of gold in Vietnam, on February 22, approached nearly VND64 million per tael (1.2 ounces) as the global gold price surpassed the mark of US$1,910 an ounce due to escalating tensions between Russia and Ukraine.
Four State-owned commercial banks continue to commit to sparing a support package of VND4 trillion to cut interest rates and all banking service fees for customers in localities implementing social distancing under Directive No.16/CT-TTg of the Prime Minister.