Gold prices see historic one-day drop
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Vietnam’s gold prices saw one of the deepest daily plunges in their history, going down by VND4 million ($170) a tael Monday.
The Saigon Jewelry Company (SJC) sold its gold at VND64 million Monday afternoon, down almost 6 percent from the weekend. A tael equals 37.5 grams or 1.2 ounces.
The gold prices were down on dollar appreciation, with investors selling assets, including gold, to buy the greenback, said chairman Tran Thanh Hai of SJC Phu Tho.
Strong selling pressure following an announcement by the central bank on looking at the possibility of reducing SJC’s monopoly on gold saw people sell gold bullion and stockpile on gold jewelry.
Currently, a tael of gold bullion and jewelry in Vietnam costs VND17.5 and VND5 million more than global prices, respectively.
Hai expected prices to fall further the next few days, tracking drops in the London and Chicago exchanges.
“Prices may fall below the $1,700 threshold [per ounce],” he added.
Spot gold rose 0.9 percent to $1,722.88 an ounce by 10:34 a.m. Monday in London. Prices dipped below $1,700 last week for the first time since August. The Bloomberg Dollar Spot Index slipped 0.5 percent after hitting a record last week. Silver, platinum and palladium all advanced.
Questions & Answers
Q.Why did Vietnam's gold prices fall so sharply on Monday?
Why did Vietnam's gold prices fall so sharply on Monday?
The drop was attributed to dollar appreciation, as investors sold assets like gold to purchase the greenback. There was also strong selling pressure following the central bank's announcement about potentially reducing SJC's gold monopoly.
Q.What was the selling price of gold from the Saigon Jewelry Company (SJC) on Monday afternoon?
What was the selling price of gold from the Saigon Jewelry Company (SJC) on Monday afternoon?
The Saigon Jewelry Company (SJC) sold its gold at VND64 million per tael on Monday afternoon. This represented a drop of almost 6 percent compared to the weekend's prices.
Q.How much more expensive is gold in Vietnam compared to global prices?
How much more expensive is gold in Vietnam compared to global prices?
A tael of gold bullion in Vietnam currently costs VND17.5 million more than global prices. Gold jewellery in Vietnam is VND5 million more expensive per tael than global prices.
Q.What is the prediction for gold prices in the coming days?
What is the prediction for gold prices in the coming days?
The chairman of SJC Phu Tho expects prices to fall further over the next few days. He suggested prices might even drop below the $1,700 threshold per ounce, tracking international trends.
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