Vietnam's average gold price closed at 42.65 million Vietnamese dong (VND) (2,029 U.S. dollars) a tael, equivalent to 1.2 ounces on Friday, a slight increase of 50,000 VND (2.3 U.S. dollars) against the previous trading day.
In the capital city Hanoi, the Bao tin Minh Chau gold shop quoted buying gold price at 42.4 million VND (2,018 U.S. dollars) a tael on Friday and selling gold price at 42.65 million VND (2, 029 U.S. dollars) a tael, a slight increase of 50,000 VND (2.3 U.S. dollars) against the previous day.
Meanwhile, Saigon Jewelery Company (SJC) in southern Ho Chi Minh City quoted buying gold price at 43.10 million VND (2,051 U.S. dollars) a tael and selling gold price at 43.50 million VND (2,070 U.S. dollars) a tael on Friday, a slight increase of 50,000 VND (2. 3 U.S. dollars) against previous trading session.
During the week, domestic gold prices fluctuated upon the global gold prices. Spot global gold price fell down below 1,595 U. S. dollars per ounce on Monday, while domestic gold prices fell at a slower speed, making domestic gold price of nearly 3 million VND (142 U.S. dollars) per tael higher then the global gold price.
However, global gold price rose again to 1,643 U.S. dollars per ounce on Thursday, the highest level since Mid-December, due to positive news from the U.S. and German economic news.
In addition, the Trust Gold Fund (SPDR) sell off a total of 30. 7 tons of gold this month, still lower than 55 tons it purchased in November.
So far this month, global gold price lost 11 percent in value, making this December the worst since 2008 when there was a global economic recession. But global gold price increased 14 percent since the beginning of this year, proving that investors found gold as a safe haven for their investment, and it is forecast to continue to rise next year.
Meanwhile, the State Bank of Vietnam remained the foreign exchange rate at 20,813 VND per one U.S. dollar since its latest adjustment made on Dec. 14.
The inter-bank dollar exchange rate advanced 185 VND per U.S. dollar, or 0.9 percent, since September when the central bank committed to keeping the forex fluctuation under one percent until the end of this year.
The exchange rates at commercial banks maintained at 21,01521, 021 VND for one dollar buying and selling, the same since Dec. 14.
On the black market, the greenback stood at 21,27021,300 VND per one buying and selling dollar, down 100 VND against the previous day.
Insiders attributed the surge to a rising demand for dollars in the domestic market at the end of the year when demand for U.S. dollars increased due to rising imports and repayment of foreign currency loans.
The devaluation of dong against dollar was also considered a measure to boost exports, they said. The forex rise will not significantly impact the market, as the government had so far successfully controlled the black market through strict fines.