Traders queue up to sell as gold loses luster

By Thanh Le, Quynh Trang February 25, 2020 | 04:00 am PT

Traders queue up at a jewelry shop in Hanoi's Cau Giay District to sell gold bars on February 25, 2020. Photo by VnExpress/Quynh Trang.

Vietnamese traders Tuesday queued up for hours to sell their gold bars as prices fell unexpectedly after a rising streak.

Dozens of people lined up at a jewelry shop in Hanoi’s Cau Giay District when SJC gold prices fell 4 percent from Monday’s peak to VND47.4 million ($2,045) per tael (1.2 ounces).

In HCMC, too, a rise in the number of sellers was seen in District 1 gold shops. A 50-year-old man who sold three bars said: "I decided to sell today because of the sudden drop. I was afraid it could fall even lower."

"I bought five taels yesterday when prices were rising but the sudden drop today caused me a loss of VND15 million ($647)," said a trader in HCMC.

Vietnam’s gold prices fell Tuesday after a 14 percent climb since the beginning of this year as U.S. prices dropped 1.1 percent to $1,658 per ounce after hitting a seven-year high in the previous session.

Market observers say that the fall came as investors chose to pocket profits, but this could be temporary as there are still increasing concerns that the novel coronavirus is becoming a pandemic, which means the metal’s prices could rise again.