VINACHEM

From this week onwards, only two gold auctions will be organized each week instead of three as in the past four months, says a notice the central bank sent to gold bidders.

Gold auctions will be held on Tuesdays and Thursdays. The central bank will announce in advance the volume of gold to be auctioned and the maximum and minimum amount each unit can buy.

This notice is consistent with the statement made by the central bank after stopping selling gold for banks to settle their gold contracts in early July.

A gold bidder remarked the demand for the yellow metal among citizens was declining. Thus, the reduced frequency of gold auctions does not affect gold reserves at banks and companies.

Meanwhile, the gap between local and global gold prices on Tuesday was narrower than last weekend. With around two tons of gold supplied each week, it is expected that the price gap will not widen.

At the gold auction on Tuesday, the floor price was VND37.6 million per tael, equivalent to the buying price quoted by gold trading companies. Most of the participating units made their bids, said the above bidder.

Saigon Jewelry Holding Co. (SJC) at 11 a.m. on Tuesday quoted the precious metal at VND37.55 million for buying and VND37.95 million for selling, unchanged from the preceding day. Meanwhile, gold in the New York market this Monday night surged from US$1,314.7 to US$1,337.3 per ounce, an increase of US$22.6.

As such, the local gold price on Tuesday was about VND3.8 million per tael higher than the world price, versus over VND4.5 million last week.

Meanwhile, the U.S. dollar on Tuesday was a little weaker.

After hiking the greenback from VND21,100 to VND21,140 last weekend and early this week, most banks on Tuesday quoted a slightly lower price. Each U.S. dollar on Tuesday bought VND21,120-21,125, down VND15-20.

Meanwhile, in the unofficial market, one U.S. dollar exchanged for VND21,220, just 0.4% higher the price quoted by banks.