Gold prices in Vietnam rise upon global rise

HANOI, April 27 (Xinhua) -- Vietnam's average gold price closed at 43.04 million Vietnamese dong (VND) (2,064 U.S. dollars) a tael, equivalent to 1.2 ounces on Friday, an increase of 70,000 VND (3.3 U.S. dollars) over the previous trading day, and 50,000 VND (2.3 U.S. dollars) against last Friday's closing session.

In the capital Hanoi, the national SJC-branded gold was traded with buying price at 42.84 million VND (2,054 U.S. dollars) a tael on Friday and selling price at 43.04 million VND (2,064 U.S. dollars) a tael, an increase of 70,000 VND (3.3 U.S. dollars) against the previous day.

Saigon Jewelry Joint-Stock Company in southern Ho Chi Minh City quoted buying price at the same, and selling price at 20,000 VND ( 0.9 U.S. dollar) lower, than those in Hanoi.

During the week, global spot gold prices gradually increased from 1,638 U.S. dollars per ounce on Monday to 1,657 U.S. dollars per ounce on Friday (compared with 1,633 U.S. dollars and 1,644 U. S. dollars respectively last week).

The increasing global trend had impacts on domestic gold prices, which gradually increased from 42.63 million VND/tael on Monday to 43.04 million VND/tael on Friday. However, the gap between global and domestic prices stood at 1.3 million VND/tael (62.3 U.S. dollars) in favor of the domestic one, which was still higher than the goal of 400,000 VND (around 19 U.S. dollars) set by the State Bank of Vietnam (SBV).

Since the Vietnamese government issued Decree No. 24 in early April, which will be enacted from May 25, under which the government would assert a monopoly over gold bar production as well as import and export of gold, domestic gold shops have operated moderately.

Insiders said the government's move is aimed at stabilizing the domestic gold market, limiting hoarding and speculation, and minimizing the influence of the gold market on monetary policy.

This week, global gold prices increased 0.9 percent due to the devaluation of the U.S. dollars against the euros, while global stock exchanges had a positive rise, said analysts.

Meanwhile, the VND maintained its value against the U.S. dollar this week thanks to the government's interest rate cuts and eased credits to real estate and securities investment. The country's two stock markets rebounded strongly, hitting their 11 month-high records.