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Gold will regain glitter, says World Gold Council expert
The fall in gold prices in recent days wouldn’t last long since the US economy is still struggling and is not likely to recover soon, an official from the World Gold Council has said.
“At a meeting in Dubai last weekend, the WGC insisted gold prices wouldn’t drop in this year,” Huynh Trung Khanh, a senior consultant with the WGC, said.
“I think the gold price won’t fall as it will take the US economy several months to recover,” Khanh said.
“The metal’s price this month will be reliant on two facts – US macroeconomic factors and whether the Federal Reserve cuts interest rates.
“I think the price this week will fluctuate between $850 and $900 an ounce.”
Gold rose to US$864.45 an ounce in New York last Friday after tumbling to $845 Thursday when the dollar jumped on better-than-expected US jobs data.
It has lost more than 16 percent since spiking to a record high of $1,030.80 an ounce on March 17.
The precious metal rose by VND50,000 a tael (a tael equals 37.5 grams) to VND17.17 million at the Saigon Jewelry Corporation Monday.
It has lost 12 percent since reaching its all-time high of VND19.45 million on March 17.
SJC said Monday it had sold 4,000 taels and bought 2,000, half the average daily trade.
Trading volumes at the Saigon Gold Exchange was also low, with around 210,950 taels traded for VND3.6 trillion ($223 million).
Some traders said they were reluctant to trade since it was hard to forecast the price.
But the price in Vietnam is VND120,000 higher than the global price.
“It takes a lot of time to import gold, so the local price can’t catch up,” Nguyen Thi Cuc, deputy general director of the HCMC-based Phu Nhuan Jewelry Company, the country’s largest jewelry maker, explained.
Thanhnien
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