While domestic gold prices tumbled after Saigon Jewelry Co. (SJC) started to process 13 tons of gold, the number of gold sellers surged sharply on Thursday.
People flocked to sell gold at local jewelry shops in the morning. Nguyen Cong Tuong, deputy sales manager of SJC, said the enterprise bought over 4,400 taels on Thursday while the selling volume was modest.
As gold keepers were concerned that the global and local price gap would narrow down due to higher supply, they decided to offload it to avoid losses, Tuong explained.
Concerning SJC’s gold processing, Nguyen Hoang Minh, deputy director of the central bank’s HCMC branch, said SJC started the job on Thursday with a small volume. This amount of gold includes non-SJC gold and deformed gold primarily from banks and gold trading companies in the country.
With this amount, banks will have enough gold to pay for depositors and enterprises will have more supply, helping ease gold demand on the market, Minh said.
However, there was still a wide gap between global and domestic gold prices, with local price around VND2.5 million higher for a tael. Last week, the difference soared up to VND3-3.1 million.
Closing the New York market on Wednesday, the precious metal was $1,769.5 an ounce, inching up $1 compared to the previous session. On the website www.kitco.com, gold price fell to $1,762.5 an ounce on Thursday, down $7.2 compared to the opening bell.