Vietnam's Gold Prices Lag Behind Global Surge
World gold prices surpassed $4,600 per ounce on August 22nd, but domestic gold prices in Vietnam increased at a slower pace. The SJC branded gold bars and gold rings rose by 600,000 VND/ounce, reaching 144.6-147.6 million VND/ounce and 144.1-147.1 million VND/ounce respectively.
Economist Nguyen Quang Huy attributed the slower increase in domestic prices to the lag between international capital flows, US dollar movements, bond yields, and interest rate expectations on one hand, and actual supply and demand, exchange rates, liquidity, inventory, and buyer sentiment on the other.
According to Mr. Huy, the narrowing of the difference between domestic and international gold prices is a positive sign, indicating that the interconnectedness between the two markets is improving.