Gold demand remains strong

August 31, 2012 | 07:53

(0) user say

Although gold prices saw no strong fluctuations, demands for the precious metal kept rising in the country on Wednesday, again widening the gap between global and local gold prices.

Saigon Jewelry Company (SJC) sold up to 6,000 gold taels on Wednesday. According to Nguyen Cong Tuong, deputy sales manager of SJC, daily selling volume of the company has been around 5,000 gold taels since August 20.

SJC has recently processed 48,000 gold taels but the information failed to ease gold demands, Tuong said.

SJC has seen large transactions of up to hundreds of gold taels ordered by banks and large enterprises.

Explaining the strong demand for gold, a representative of the central bank said that many banks have increased gold buying to spur liquidity after people have shifted to gold. Although some enterprises have suggested the central bank to import more gold to stabilize the market, the agency currently has no plans for gold imports, saying that domestic supply is enough to serve local buyers.

SJC on Wednesday quoted gold prices at VND44.37 million and VND44.57 million a tael for buying and selling respectively, rising by VND100,000 against the previous day. A tael equals 1.2 troy ounces.

On the website www.kitco.com, the yellow metal on the world market was US$1,662 an ounce at 6:00 p.m. on Wednesday, dropping by $4 compared to the closing price on the New York market on the previous night.

Saigontimes

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional