Vietnam was the strongest gold jewellery market in Asia last year, according to the World Gold Council’s report about gold trends in 2017 released recently.
With year-on-year growth of 11% in the fourth quarter of 2017, Vietnam’s annual demand for jewellery rose by 7% to reach 16.5 tonnes.
This was the strongest year for Vietnamese jewellery demand since 2008, the council said, adding that demand benefited from robust economic growth and continued stock market gains.
Expansion of the jewellery retail network and tentative signs that the Government will begin to liberalise the gold market also boosted the market, the council said in the report.
Globally, gold demand rallied in the closing months of 2017, gaining 6% year-on-year to more than 1,090 tonnes in the fourth quarter, however full-year demand fell by 7% to 4,070 tonnes.
Full-year gold jewellery demand increased by 4% to 2,135 tonnes - the first year of growth since 2013.
India and China led a 4% recovery in jewellery, although demand remained below historical averages.
Increased use of gold in smart phones and vehicles sparked the first year of growth in technology demand since 2010.
In another report, the council said investors added gold to their portfolios as incomes increased, uncertainty loomed and gold’s price growth continued.
In 2018, gold will be supported by synchronised global economic growth, shrinking central bank balance sheets and rising rates, frothy asset prices and market transparency, efficiency, and access.
The State Bank of Vietnam is drafting amendments to the Decree 24/2012/ND-CP about gold business management, which could impact the gold market this year.
In the domestic market, demand for gold increased in the days approaching the Tet (Lunar New Year) holiday.
According to Nguyen Thi Cuc, Deputy Director of Phu Nhuan Jewellery Joint Stock Company, demand for gold products last week increased by 15-20% compared to normal days.
SJC gold was sold at VND36.87 million (US$1,600) per tael on February 7 in Ho Chi Minh City market.
On Kitco, gold was traded at US$1,328.VNA