Local gold prices lost VND80,000/tael to VND41.75 million/tale threshold on Wednesday following suit of a fall in global market, and local premium continued to stay high at VND2.1 million a tael.
Hanoi SJC gold is quoted at VND41.64 million/tael for bid and VND41.74 million/tael for ask, respectively as of 10:00 local time.
Thang Long gold, produced by Bao Tin Minh Chau company, is quoted at VND40.4 million/tael for bid and VND40.7 million/tael for ask, still VND1 million lower than the SJC branded one.
SBJ Sacombank was quoted at VND41.67 – VND41.68 million/tael for bid and ask, respectively.
Domestic gold premium stood high at around VND2.1 million/tael this morning, figure is calculated under the Vietcombank rate. However, analysts say they don’t expect this high premium to affect the local dollar prices as demand for gold import is low on the country’s negative June CPI and fear of deflation as well as local consumption.
Gold Flat in Asia Trade
Gold was little changed around $1,571 an ounce on Wednesday and investors now feel uneasy about deflation after recent reports showed signs of slowing global economic activity, already dented by the debt crisis in Europe.
Money gold hardly moved at $1,571.89 an ounce, having hit a low around $1,567; US gold for August delivery fell $2 an ounce to $1,572.90.
Physical dealers, who have seen limited buying interest in recent weeks, said a slowdown in the global economy could force jewelers, investors and speculators to tighten their purses.