Gold slumps as China’s Central Bank keeps gold buying on hold for second month

The international gold price has declined recently because the People's Bank of China (PBoC) didn't buy any gold for the second consecutive month.


The global gold price has seen a slight recovery, prompting a slight increase of 9999 gold ring price this morning. Although gold touched a new record of US$2,450 an ounce in May, it currently dropped by US$100 per ounce.

At 10 am on July 10, Saigon Gold and Jewelry Company (SJC)’s 9999 gold ring for buying was priced at VND74.35 million and VND75.95 million for selling, showing an increase of VND50,000 per tael for buying and selling compared to yesterday afternoon.

DOJI Group bought 999 gold rings at VND75.25 million per tael and sold them at VND76.5 million per tael, up VND1 million a tael for buying and selling,

SJC’s 9999 gold for buying was priced at VND74.98 million and VND76.98 million for selling.

Phu Nhuan Jewelry Joint Stock Company (PNJ) and DOJI Group also announced the buying price of a tael of gold at VND74.98 million, and the selling price was VND76.98 million.

The selling price of a SJC-branded gold bar of State-owned commercial banks, commonly referred to as the Big 4 including Vietcombank, VietinBank, Agribank, and BIDV was VND76.98 million per tael.

State-owned commercial banks and Saigon Gold and Jewelry Company (SJC) have launched online sales of SJC gold bars at 9 am and 3 pm. However, customers are disappointed because it is too difficult to register to buy gold online despite the restriction that allows each person can only buy a single unit per day. The daily quotas always are full one hour after starting selling.

Due to the large number of people registering to buy SJC gold bars, banks can only serve a certain number of customers each day, State-owned commercial banks said.

Gold spot price from the international gold market of Kitco was traded at US$2,367.9 per ounce on the morning of July 10 (local time in Vietnam) equivalent to VND72.6 million per tael. It is lower than the domestic SJC gold price by approximately VND4.4 million per tael and the 999 gold ring price by VND3.5 million – VND3.9 million per tael.

According to data released by the People's Bank of China, its gold reserves remained unchanged in June at 72.8 million ounces. The People's Bank of China (PBoC), China’s central bank, didn’t buy any gold to its reserves for a second consecutive month in June, ending an 18-month buying spree that had driven gold prices to record highs.

Some analysts still believe that purchases will resume as the PBoC seeks to diversify its reserves and guard against currency depreciation.

According to the World Gold Council (WGC)’s report, about 20 central banks still expect to increase their gold holdings next year to help mitigate risks and prepare for further political and economic uncertainty, globally.

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