Domestic gold price outpaces global price VND2 million

The price of gold in Vietnam plunged deeply below VND47 million a tael (1.2 ounces) on September 16 as global price plummeted in the trading sessions last night and this morning.

Sacombank Jewelry Company bought gold at VND46.31 million and sold at VND46.59 million at 10:50 am local time.

Saigon Jewelry Company, the biggest gold shop in Vietnam, collected gold at VND46.25 million and sold at VND46.55 million.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND46.3 million and sold at VND46.65 million at the same time.

Domestically, gold fetched around VND2 million a tael higher than global price.

On foreign currency market, the dollar exchange rate strongly escalated on free market this morning. The US currency was bought at VND21,020 and sold at VND21,080, an increase of VND60 per dollar over the previous day, at 10:10 am in Hanoi.

Meanwhile, the rate at commercial banks remained unchanged for several days.

Internationally, gold severely fell on signs that European banks will have enough cash through year-end, easing concern that the region’s debt crisis will worsen.

The European Central Bank coordinated with international policy makers to lend dollars to banks to help tame the credit crisis. Meanwhile, Germany and France gave assurances that Greece will remain part of the European Union, and China indicated it is willing to buy euro- based bonds.

Gold for immediate delivery dropped as much as $31.3 an ounce, or 1.7 percent, to close at $1,790.8 an ounce on the Comex in New York.

In Asia, the metal continued heading South in the trading session this morning. Spot gold trimmed $20.2 an ounce to trade at $1,768.4 an ounce at 10:50 am Vietnamese time.

Holdings at SPDR Gold Trust, the largest exchange traded fund backed by bullion, reduced by 0.6 metric tons to 1,241.3 metric tons.

The euro exchange rate against the greenback sharply restored to stand at $1.39 a euro in Tokyo this morning from $1.37 the previous day.

Crude oil futures for October delivery gained $0.25 a barrel over the closing price in New York to trade at $89.65 a barrel on the New York Mercantile Exchange at 10:40 am Vietnamese time.

By Uyen Nhi

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