VINACHEM

HA NOI (VNS)— Gold prices in the domestic market decreased sharply yesterday to less than VND46 million (US$2,190) per tael, falling to two-month low, bucking the world market's upward trend.

Yesterday morning, the DOJI Group announced a selling price of VND46.12 million per tael ($2,196) (one tael is equivalent to 0.5oz) then lowering to VND45.95 million ($ 2,188). The Sai Gon Jewellery Company (SJC) price reduced VND320,000-440,000 per tael.

In HCM City, the SJC gold price fell VND290,000 ($13.8) per tael to VND45.95 million ($2,288) yesterday morning. That was the first time domestic gold prices have fallen lower than VND46 million ($2,190) per tael.

At Phu Nhuan Jewellery Company, the gold price was VND46.05 million($2,193) per tael. However, the price later fell VND150,000 ($7.2) per tael to VND45.9 million ($2,286).

Despite of the decrease, the gap between domestic and world gold prices was VND2.85 million ($136) compared with the previous level of VND3.2 million ($152).

Some people bought gold as prices lowered while the world market saw little change because the US market was closed due to Hurricane Sandy.

Earlier, Nguyen Quang Huy, head of the State Bank of Viet Nam's Foreign Currency Management Department, said Government Decree No 24/2012/ND-CP, which came into effect on May 25, would prohibit activities such as using gold as a means of payment, processing jewellery gold or trading bullion without a licence from the Central Bank and other gold-related businesses without approval.

The right to buy and sell gold bars would only be allowed with organisations who have been licensed by the Central Bank. Huy said several people wanted to change their gold to SJC, the national gold trademark. However, other licensed gold trademarks would be able to circulate in the market, he said, adding that they did not need to immediately change to SJC gold bar to avoid price speculating. — VNS