VINACHEM

The State Bank of Việt Nam will keep track of gold price fluctuation and intervene if necessary, said Nguyễn Ngọc Cảnh, director of the bank’s Foreign Exchange Management Department.

Cảnh said the intervention to stabilise the gold market would be carried out under the Government’s decree on gold bar transactions.

"The reason for the hike in gold prices in recent days is the psychological impact following the Brexit vote," Cảnh said.

The gold market calmed yesterday after the central bank’s announcement.

Insiders said the fluctuation of gold prices in recent days had resulted in losses of millions of Vietnamese đồng for buyers in one night but profited gold companies. In many gold shops, the price jumped nearly VNĐ2 million on Wednesday but immediately dropped by more than VNĐ2 million yesterday.

Gold prices of the Sài Gòn Jewelry Holdings Co (SJC)’s suddenly slid yesterday by VNĐ2.3 million to VNĐ36.5 million and VNĐ37.5 million per tael at buying and selling, respectively.

Some other companies, including Phú Quý and Bảo Tín Minh Châu, listed the buying price from VNĐ36.4 million to VNĐ36.85 million per tael, and the selling price at between VNĐ36.9 million to VNĐ37.72 million.

A small survey by local reporters showed that the number of people coming to jewelry shops in Hà Nội yesterday dropped 30 per cent compared with the days before.

Tô Linh Giang, a local resident from Bạch Mai Street, said the increasing price of SJC gold in recent days made him dizzy.

“I bought gold on the day it was VNĐ35 million per tael. I made a small profit but I do not know if I should sell now to make more profit or continue waiting. It is because there are many predictions that the gold price will continue going up,” said Giang.

Lê Thị Lý from Trương Định Street said she heard that gold prices could increase to VNĐ50-60 million per tael so that she would wait. “I bought gold on the day its price was VNĐ37 million per tael, if I sell it now I will lose.”

According gold traders, many people who bought gold for speculation rather than savings failed to foresee the price trends. This was one reason the gold market was quiet yesterday.

On the global gold trading floor, gold was traded at US$1,358 per ounce (also at $1,629 per tael or 1.2 ounce).

On the same day, the central bank increased its reference rate per American dollar by eight đồng, to VNĐ21,869.