Gold and dollar cool down

The price of gold in Vietnam stood stably around VND37.7 million a tael (1.2 ounces) on February 28 although global prices continued to move uphill.

Sacombank Jewelery Company bought gold at VND37.61 million and sold at VND37.69 million as of 9 am local time.

Saigon Jewelry Company, the biggest gold shop in Vietnam, bought the precious metal at VND37.62 million and sold at VND37.7 million at the same time.

Meanwhile, Hanoi-based Phu Quy Jewelry bought SJC-brand gold at VND37.62 million and sold at VND37.75 million.

According to gold traders, bullion market turned muted after the Government announced that it would scrap gold bullion trade on free market. Firms and investors were waiting for more detailed regulations from authorities about this matter.

Domestically, gold fetched VND250,000 a tael higher than global prices.

Dollar exchange rate on free market significantly dropped over last weekend, falling below VND22,000 per dollar this morning. The greenback was bought at VND21,900 and sold at VND21,950, a decrease of VND100 per dollar.

Internationally, bullion extended last week’s rising momentum. Spot gold rallied US$3.2 an ounce over the closing price in New York to trade at $1,413.8 an ounce as of 10 am Vietnamese time.

Last week, the metal gained 1.5 percent, heading for the fourth weekly gain. Gold was backed by a rising demand for the metal as a hedge against inflation and recession as escalating political riots in Middle East and North Africa caused crude oil price to hike strongly.

This morning, light sweet crude oil in New York added more than $1.6 a barrel to nearly $99.5 a barrel as of 10 am Vietnamese time.

Brent crude oil rose nearly $1 a barrel to around $114 a barrel in London.

The euro exchange rate against the US dollar climbed to above $1.37 a euro in Tokyo this morning.

By Thuong Nhan

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