Gold tumbles after God of Wealth Day
According to Tuoi Tre news site, gold rose by US$10 to US$1,233 an ounce on global markets but local gold lost a hefty VND350,000 per tael compared to the previous day. A tael equals to 1.2 troy ounces.
With the Vietnam dong-U.S. dollar exchange rate quoted by local lenders on February 7, the world gold price was equivalent to around VND33.61 million per tael, VND3.39 million lower than the domestic level. The gap was narrowed down by nearly VND1 million versus the end of last week.
Saigon Jewelry Company (SJC) gold fell sharply during the day. Mi Hong gold shop posted the selling price at VND36.9 million per tael, or VND200,000 higher than the buying price.
Vietnamese people often buy some gold on God of Wealth Day on the tenth of the first lunar month in anticipation of good luck and prosperity throughout the year.
In previous years, gold usually soared prior to God of Wealth Day but fell in the following days. Knowing the rule, gold hoarders offload gold on God of Wealth Day to enjoy high prices, forcing gold companies to revise down prices.
Speaking to Tuoi Tre, some enterprises were surprised at a high number of gold sellers on Monday. Some customers were rushing to sell gold to reduce losses after buying at high prices on God of Wealth Day.
