ID :
15954
Fri, 08/15/2008 - 13:57
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Shortlink :
https://oananews.org//node/15954
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State Bank warns investors about gold fluctuation
Hanoi, Aug 15 (VNA) - The State Bank of Vietnam warned on August 13 that investors should be wary about investing in gold because of unpredictable fluctuations on the world gold market.
The warning followed two days of chaos at local gold shops. Feverish gold buying on August 12 was sparked by a sudden slump in world prices from 864 USD to 804 USD per ounce - the lowest price since the beginning of the year.
On Aug. 12 morning, local prices suddenly dropped from 17.6 million VND to 16.8 million VND per tael [one tael is equal to 1.2 ounces].
This caused a rush of investors to gold shops throughout Hanoi to take advantage of the situation. There were even traffic jams in gold-dealing Tran Nhan Tong street from 10am to noon.
At Bao Tin Minh Chau Jewellery Cp, clients stood on each other's toes with wads of notes to buy gold.
However, by late afternoon, the strong demand had pushed the local price to 17.25 million VND and demand slackened.
On August 13 morning, demand rose again, pushing prices for the precious metal to 17.3 million VND to 17.4 million VND, about 1 million VND a tael higher than global prices. (In Vietnam , prices for gold are usually 200-300,000 VND a tael lower than global prices.) In a special report, Phi Dang Minh, deputy head of the State Bank'sDepartment for Foreign Exchange Management said local gold prices have risen because of temporary speculation.
"International experts believe gold prices will fluctuate unpredictably in coming months and may slip further because gold market is in a low-demand season, the US dollar is gaining over other currencies - and oil prices are going to move down, Minh said.-Enditem
The warning followed two days of chaos at local gold shops. Feverish gold buying on August 12 was sparked by a sudden slump in world prices from 864 USD to 804 USD per ounce - the lowest price since the beginning of the year.
On Aug. 12 morning, local prices suddenly dropped from 17.6 million VND to 16.8 million VND per tael [one tael is equal to 1.2 ounces].
This caused a rush of investors to gold shops throughout Hanoi to take advantage of the situation. There were even traffic jams in gold-dealing Tran Nhan Tong street from 10am to noon.
At Bao Tin Minh Chau Jewellery Cp, clients stood on each other's toes with wads of notes to buy gold.
However, by late afternoon, the strong demand had pushed the local price to 17.25 million VND and demand slackened.
On August 13 morning, demand rose again, pushing prices for the precious metal to 17.3 million VND to 17.4 million VND, about 1 million VND a tael higher than global prices. (In Vietnam , prices for gold are usually 200-300,000 VND a tael lower than global prices.) In a special report, Phi Dang Minh, deputy head of the State Bank'sDepartment for Foreign Exchange Management said local gold prices have risen because of temporary speculation.
"International experts believe gold prices will fluctuate unpredictably in coming months and may slip further because gold market is in a low-demand season, the US dollar is gaining over other currencies - and oil prices are going to move down, Minh said.-Enditem
