Gold drops VND1.3 million per tael

The price of gold in Vietnam plunged sharply on September 27 as global gold prices hit the lowest level in the past three years.

Gold bar prices were lowered by gold trading enterprises at various levels, of which the sharpest decrease was up to VND1.3 million per tael compared to the previous day.

Saigon Jewelry Company quoted SJC gold price at VND64.6 million per tael for buying and VND65.6 million per tael for selling, down VND1 million per tael in the buying rate and VND800,000 per tael in the selling rate, at 4.30 p.m. in Ho Chi Minh City.

At Mi Hong Company in Binh Thanh District, HCMC, SJC gold price decreased by VND1.3 million per tael to VND64.5 million for buying and VND1 million per tael to VND65.3 million for selling.

At the same time in Hanoi, Phu Quy Gold Company bought SJC gold at VND64.7 million per tael and sold it at VND65.6 million per tael, down VND900,000 per tael in the buying rate and VND750,000 per tael for the selling rate.

Phu Nhuan Jewelry Company reduced SJC gold price by VND600,000 per tael in both buying and selling rates to buy the yellow metal at VND65 million and sell it at VND65.8 million.

Spot gold price on the Kitco floor on the afternoon of September 27 (Vietnam time) slightly recovered to US$1,646.2 an ounce. This price after conversion is equivalent to nearly VND46.8 million per tael, about VND19 million per tael lower than the domestic gold price.

The global gold price plummeted as the US dollar remained in an upward trend and the US Treasury bond yields hit new highs. The wave of interest rate rises around the globe has been making non-yielding assets like gold less attractive, causing the precious metal to devalue drastically.