The price of gold has dropped below VND21 million per tael and the VN-Index has plunged below 500 points in Ho Chi Minh City on June 16.

Gold price fluctuations volatility stagger investors

Gold dealers in the city quoted gold prices at between VND20.83 -20.9 million per tael (1.2 ounces) in the morning of June 16, and increased to VND20.87 – 20.93 million per tael by the close of trade on buying and selling respectively.

However, despite the drop in gold prices, gold transactions have increased dramatically.

Both gold sales and purchasing increased at Saigon Jewelry, which dealt with more than 4,000 taels, a three-fold increase compared with the last few days. 

Meanwhile, shares have dipped in the city, as investors reacted anxiously to previous heavy selling and trading volumes declined significantly.

The VN-Index lost 21.55 points, 4.4 percent, to 471. Among index members, 12 advanced, 153 declined and one was unchanged, almost all shares hitting the bottom of their regulated trading bands.

Trading volumes declined significantly from Monday's session, dropping 47 per cent to 34.7 million shares, with the day totaling VND1.6 trillion (US$90 million).

In Hanoi, the HaSTC-Index also lost ground, dropping 10.77 points, 6.1 percent, to end the day at 165.

In Hanoi, the HaSTC-Index also lost ground, dropping 10.77 points, 6.1 percent, to end the day at 165.

Total share transactions decreased by half compared with recent days. Twenty-two million shares, equivalent to VND834 billion, changed hands.

The number of listed companies dropping totaled 170, with only 17 unchanged or climbing.

Dang Cong Cuong, a VN Direct Securities analyst, said the market is declining, but demand is quite good with the lower price levels.

He expects demand to be greater if the market slumps further.

Foreign investor transactions remained modest yesterday, with only around 4.4 million shares changing hands on the HCM City Stock Exchange.

They finished the day as net sellers of 314,000 shares, worth VND31.2 billion ($1.8 million).