The premium paid by gold buyers in Vietnam, the largest user in Southeast Asia after Thailand, will extend declines from a record after banks complete the return of bullion deposits to investors this month. The gap between domestic and global prices for immediate delivery will probably drop to 4 million dong a tael ($159 an ounce) by the end of July, according to Nguyen Thanh Truc, vice chairman of the Vietnam Gold Traders Association. The premium reached an all-time high of more than 6 million dong in April, when bullion tumbled into a bear market, spurring physical demand across Asia, according to Truc. Vietnam’s central bank has tightened rules on gold trading, including making itself the sole importer, in a bid to limit the impact of gold prices on the exchange rate and redirect financial resources toward economic development. As part of the drive, banks must return all gold deposits to investors by June 30, while the State Bank of Vietnam is selling metal to lenders and trading companies to boost domestic supplies.
Posted on: Wed, 12 Jun 2013 09:41:03 +0000
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