VINACHEM

HA NOI (VNS) — Local gold prices dropped by 0.38 per cent yesterday to a four-week low of VND36.6-36.7 million (US$1,686 – 1,692) per tael, driven by a downward trend in world markets on a strengthening of the dollar on Monday and Tuesday.

Sai Gon Jewellery Company (SJC) traded bullion at VND36.66-36.78 per tael, while DOJI traded the SJC bullion, at VND36.70-36.75 million per tael.

One tael is equivalent to 1.2 ounces.

Hoang Anh, a consultant with the Ha Noi-based International Gold Company (IG) said: "World gold is reviving but is still below $1,300. The domestic market needs to wait until tomorrow morning to catch the right trend."

Local gold price has dipped 0.62 per cent in three days while world prices fell 3.3 per cent in the last two sessions, with Reuters reporting it as the metal's biggest two-day loss since October.

Yesterday, spot gold on the global market had gained 0.3 per cent to $1,297.94 an ounce.

Reuters cited traders as saying gold could drop further, especially as this week's $40 drop failed to generate a robust pick up in physical demand in Asia.

On Tuesday, Fed Chair Janet Yellen signalled that the Fed will hold its monetary policy loose until jobs data shows the financial crisis's consequences are gone.

Market observers have said that if the Fed raised interest rates, there would be not many reasons for investors to hold gold. — VNS