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The price of gold in Vietnam retreats to near VND67 million per tael due to a sharp drop in the global gold price. (Photo: SGGP) |
At around 4:30 p.m. in Ho Chi Minh City, Saigon Jewelry Company listed the buying price at VND66.4 million per tael and the selling price at VND67.1 million per tael, down by VND200,000 per tael in both buying and selling rates compared to the previous day.
Meanwhile, in Hanoi, Phu Nhuan Jewelry Company quoted the SJC gold price at VND66.45 million per tael for buying and VND67.1 million per tael for selling, down VND150,000 in the buying rate and VND300,000 in the selling rate.
Prior to the monetary policy meeting of the US Federal Reserve (FED), the world gold price plummeted as investors took profits after it surpassed US$2,000 per ounce amid concerns about risks in the global financial market. On the night of March 21, gold prices closed down $38 an ounce to $1,940 an ounce in New York.
However, in the afternoon of March 22 (Vietnam time), the spot gold price on the Kitco floor recovered slightly to $1,944 an ounce, up nearly $5 an ounce compared to the closing price in New York. Despite this, the global bullion price was still about VND11.6 million per tael lower than the SJC gold price.
Analysts attributed the deep decline in the gold price to investors’ profit-taking and concerns about risks in the global financial market, particularly after some banks in the US and Europe went bankrupt and faced liquidity problems.
In addition, the market still expects the FED to raise interest rates by 0.25 percentage points in this monetary policy meeting, which will further impact gold prices as gold is a non-yielding asset, so it is not favorable in an environment of rising interest rates.
