Economic difficulties push gold demand down

By VNA   August 19, 2023 | 08:43 pm PT
Demand for gold in Vietnam shrank 9% in the second quarter year on year due to economic difficulties, according to the World Gold Council.

Vietnamese purchased 12.8 tonnes of gold in the second quarter of 2023, down 1.3 tonnes year-on-year, it added.

According to the council, Vietnam’s economy experienced sluggish growth in the first two quarters of this year, affecting local market sentiment and jewelry demand.

Local demand for gold bars and coins dropped by 5% year on year from 9.6 tonnes in the second quarter last year to 9.1 tonnes in the same period this year.

Meanwhile, demand for gold jewelry fell from 4.5 tonnes to 3.7 tonnes.

Shaokai Fan, Head of Asia-Pacific (excluding China) and Global Head of Central Banks at the World Gold Council, said the Q2 downward trend in Vietnam was like those in other markets in the ASEAN region.

The demand for gold bars and coins was also limited due to low liquidity, affected by the downturn of the stock market and real estate, he added.

The General Statistics Office also reported the gold price index in July 2023 decreased by 0.03% compared to the previous month. On average, in the first seven months of 2023, the gold price index increased by only 1.06%, a low level compared to the same period in recent years.

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