Gold testing new price bar

November 09, 2010 | 18:14

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By late afternoon of today, the price of gold tumbled against the morning level close to VND37 million ($1.897) per tael after the State Bank of Vietnam (SBV) governor Nguyen Van Giau told the Vnexpress that SBV would grant quotas on gold imports for businesses.

The governor attributed the gold and US dollar fever this morning to escalating gold price in the world market which hit new record high of $1,410.60 an ounce overnight and speculators’ manoeurve.

The SBV chief also talked of the possibility speculators had pushed up the gold price to exert pressure on management authorities.

To increase market liquidation, the governor said the SBV would grant quotas for gold imports in suitable volumes to businesses.

SBV’s action was the third of its kind this year. The first was at the year’s beginning when around 7-8 tonnes of gold was imported. The second was in October when SBV granted quotas for importing around three tonnes of gold.

The abnormal gold price hike this morning was partly infused by escalating exchange rate between Vietnam dong and US dollars.

SBV chief also said this afternoon the state bank would sell US dollars to banks in need of greenback.

He also asserted since the SBV declared to interfere into the foreign exchange market, no banks have asked to buy dollars.

After the governor’s announcement, the price of gold in domestic market tumbled quickly to more than VND37 million per tael in the afternoon.

The greenback price also cooled down around VND21,000 after SBV’s move after reaching record VND21,500 per US dollar in Hanoi and VND22,000 in Ho Chi Minh City this morning.

>>Gold, dollar set dramatic new records

>>Gold smashes through $1,400 mark for first time

>>Hong Kong gold ends higher

>>Shares continue to fall as gold and US dollar soar

By Thuy Mai

vir.com.vn

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