Gold prices see historic one-day drop

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.