Bullion surges for second day

The price of gold in Vietnam added VND110,000 a tael (1.2 ounces) over the previous day to approach VND38 million again on July 7 as global price climbed for the second trading session to a two-week high due to concerns over Europe’s sovereign-debt crisis and inflation in China.

Phu Nhuan Jewelry Company purchased the metal at VND37.8 million and sold at above VND37.85 million as of 10 am local time.

Meanwhile, the Hanoi-based Phu Quy Jewelry bought SJC-brand gold at VND37.77 million and sold at VND37.85 million at the same time.

Earlier, many major jewelers traded the metal at VND37.9 million a tael. A narrow gap between buying and selling prices was still maintained by several gold shops to boost trading.

Sacombank Jewelry Company bought the metal at VND37.8 million and sold at VND37.84 million.

Domestically, gold fetched around VND200,000 a tael lower than global price.

State-owned Vietcombank bought the greenback at VND20,550 and sold at VND20,620, a decrease of VND10 per dollar over the previous day.

The interbank exchange rate still stood at VND20,613 per dollar.

Internationally, gold shot up after the Public Bank of China raised its benchmark deposit and lending rates by 25 basis points, rising concern that global economic growth will slow, and as the European debt woes bolstered demand for the metal as a safe haven.

Gold for immediate delivery rose as much as $13.1 an ounce, or 0.9 percent, to close at $1,530.4 an ounce on the Comex in New York.

In Asia, the metal lightly slid this morning, however, it still stood near a two-week high. Spot gold dipped $0.4 an ounce over the closing price in New York to trade at $1,530 an ounce as of 10:30 am Vietnamese time.

The euro exchange rate against the US dollar dropped to $1.43 a euro in Tokyo this morning, from $1.45 the previous day.

The euro declined against the dollar after Moody’s Investors Service cut Portugal’s credit rating to junk, renewing concerns another European nation will need a bailout.

Crude oil futures for August delivery gained $0.7 a barrel to trade at $97.35 a barrel as of 10:45 am Vietnamese time.

By Gia Doan

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