Gold prices eased slightly this week in Vietnam, Asia's second-largest gold investor after India, as a recovering stock market drew investors. The share market has been rising nearly every session since August 6, especially after regulators widened the daily trading band to 5 percent on August 18 to boost liquidity.
SJC gold, manufactured by Saigon Jewellery Holding Co and popular in Vietnam trading, eased 0.7 percent to 17.45 million dong ($1,058) per tael on Friday, from 17.58 million dong a week ago. One tael is equivalent to nearly 1.21 ounces.
Asia Commercial Bank, which operates gold trading floors in Ho Chi Minh City and Hanoi, cut its sell offer for ACB Gold piece to 17.41 million dong per tael on Friday, from 17.6 million dong on August 22. Domestic gold prices in Vietnam did not move along with world prices as gold jumped to $844.00 an ounce on Thursday, its highest level since August 11. Vietnamese banks, strained by high dong interest rates this year, are expected to cut rates on dong deposits further in the coming weeks due to ample liquidity, a move that could send investors looking elsewhere to put their money.
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