speculation rather than a supply shortage, according to Nguyen Van Giau,
governor of the State Bank of Vietnam (SBV).
The global gold price set new records in the past few days, as did the domestic gold market.
The SBV and the Vietnam Gold Association had kept a close watch on the
market in the last few days, and discovered there was no shortage of
gold, Giau said, adding that speculation was possibly the cause for the
price rise.
Domestic gold prices in August and the
first half of September were lower than the world price. But currently
the domestic price is 400,000 VND per tael higher than the global price.
The SBV was working with other agencies, including
the police and market management, to discover the reasons behind the
price hikes.
"With this kind of sensitive item, our
policy is not to completely ban gold imports, but gold companies are not
permitted to import any volume they want," Giau said.
"We are establishing a management framework for gold trading and
imports so that it is suitable with a market economy. We will collect
ideas from ministries and industries when we complete it."
Nguyen The Hung, general director of the Vietnam Gold Investment and
Trading Company, said the gold price on the domestic market would be
equal or even lower than the world price if the SBV permitted gold
importers to import gold.
However, the Government
has stopped granting permits for gold imports, which indicates that it
no longer considers gold an essential item, according to an expert.
In addition, the higher gold price had not affected people's lives
since few people conducted their transactions in gold, he said.
The gold price on the domestic market on Sept. 30 morning fell to
31.15 million VND (1,597 USD) per tael (1.2 ounces) after it reached a
record of more than 31.3 million VND (1,605 USD) per tael on Sept. 29,
following an upward trend in global gold prices.
On
Sept. 29, most gold shops in HCM City raised their price by more
than 700,000 VND (21.3 USD) over the Sept. 28 price to 31.25-31.36
million VND per tael.
On Sept. 30 morning, SBJ gold
was buying and selling at 31.15 million VND (1,597 USD) and 31.18
million VND (1,599 USD) per tael, respectively.
Sai
Gon Jewellery Holding Co on Sept. 30 bought the precious metal at 31.14
million VND and sold it at 31.18 million VND per tael, a reduction of
130,000 – 170,000 VND against Sept. 29.
The global
gold price on Sept. 29 reached an all-time high of 1,313 USD an ounce on
speculation that a global economic recovery would stoke inflation.
In Asia , the metal slightly fell on Sept. 30 morning to 1,309 USD an ounce.
The weakening of the US dollar on the world market has also contributed to the gold price hike, analysts have said./.
