Gold prices slide but further growth expected

Gold prices declined on January 7 after touching a four-month high, but the uptrend is unlikely to stop.

Buying prices at local gold and jewellery firms stood at 43.62 - 43.68 million VND per tael (32.71 million - 32.76 million VND for an ounce), and selling prices had reached 43.82 - 44.02 million VND per tael.

On January 6, buying and selling prices hit four-month highs at around 43.90 million VND (1,890 USD) and 44.45 million VND per tael, respectively.

International gold prices edged down on January 7 after hitting seven-year highs the previous day.

Spot gold futures inched down 0.03 percent to trade at 1,565.25 USD per ounce.

Spot gold has jumped 3.2 percent in the last seven days as investors and traders around the globe worry about tensions between the US and Iran after a US drone killed a top Iranian military official on January 2.

Both sides have responded with aggressive rhetoric, raising concerns of further instability in the Middle East.

This could well boost gold prices further as investors look for a safe haven amid geopolitical tensions and a gloomy global economic outlook.

Spot gold futures have gained 22.3 percent since the end of May 2019.

Trading volume has remained relatively stable in recent days despite big price moves, Nguyen Hoang Minh, deputy governor of the State Bank of Vietnam (SBV) branch in HCM City, said.

The SBV is closely watching the development of gold prices and will make a response to any big changes, Minh said.

The SBV has issued Circular 29/2019/TT-NHNN to amend Circular 16/2012/TT-NHNN instructing the implementation of Government Decree 24/2012/NA -CP on gold trading.

Under the new circular, gold trading businesses will have to submit documents to the SBV to recognise changes to its business licence. The applications must be completed within 30 days from the date the company decides to change its business portfolio.

Gold trading businesses are allowed to make changes to the gold shops they use, and send quarterly reports to the SBV and its local offices.

The circular will take effect on February 12, 2020.

Source: Vietnam News Agency