The domestic gold price on July 29 hit a three-month low to 27.60 million VND (1,432 USD) per tael (1 tael equals 1.2 ounces).
The fall was mainly driven by the drop in global gold prices and sparse trading at domestic gold shops.
Shops in Hanoi and HCM City, including Sai Gon Jewellery, Sacombank, Bao Tin Minh Chau Jewellery, Agribank Jewellery and Phu Nhuan Jewellery stores, quoted buy/sell prices at 27.60-27.71 million VND (1,432-1,437 USD) per tael on July 29, down 400,000 VND from July 27's price and 60,000 VND from July 28's price.
Vietnam National Gold, Silver and Gemstones Corporation official Nguyen Huu Dang said both buying and selling were sluggish.
According to SJC Business Department, while the sharp decrease motivated people to buy gold, many remained cautious as the domestic price had been higher than the global price.
A staff member at Bao Tin Minh Chau Jewellery company said the number of people buying gold gradually increased as many customers expected the downward-trend was going to end. However, others sold their gold for cash.
Investor Do Thi The urged others to take a more cautious approach.
"We should be more patient during times like these," said The.
"I believe the price will slide as concerns over the stability of the financial system recede."
The adverse link between gold and the US dollar on July 29yesterday pushed the dollar on the domestic market to 19,270 VND, up 0.25 percent against July 28.
Gold prices firmed in Europe on July 29 as some Asian buyers were tempted back to the market by the precious metal's fall. The weaker dollar also helped support prices.
Spot gold was at 1,164.9 USD an ounce on Kitco.com on July 29 afternoon, against 1,162.55 USD late in New York a day earlier, recovering from a three-month low of 1,156.9 USD reached that day. US gold futures for August delivery rose 5.9 USD to 1,166 USD.
(CPV/VNA)
