Gold stores have been applying limits to how much gold a single customer can buy on the back of higher processes and lower supplies–some have even run out of gold entirely, according to VN Express.
The arrest of a local gold smuggler made national news last week which was likely behind the sharp jump–less supply equals more demand. If there is a desire to ‘stabilise’ the gold price, it’s not clear what the thinking is behind clamping down on gold smuggling. That said, the increase in supply puts downward pressure on the dong which key decision makers also don’t want. At the end of the day it can only be one or the other: cheaper gold and cheaper dong or more expensive gold and more expensive dong.