Gold and dollar slide

The price of gold in Vietnam on July 15 dipped VND50,000 a tael (1.2 ounces) over the previous day as the global price experienced choppy trading session.

Bullion was bought at VND28.2 million and sold at VND28.25 million. The metal has fluctuated between VND28.1million and VND28.4 million for two weeks, sending market into a muted mood.

On the black market, the US dollar exchange rate against the Vietnamese dong fell to VND19,140 for buying and VND19,160 for selling, a decrease of VND40 per dollar over yesterday.

State-owned Vietcombank purchased dollars at VND19,090 and sold at VND19,095.

Globally, the metal, which is considered as a hedge against inflation, dropped after the US Federal Reserve cut economic growth forecast for this year to 3-3.5 percent from 3.2-3.7 percent in April, eroding speculation on inflation.

Spot gold lost as much as $2.8 an ounce, or 0.2 percent, to close at $1,209.5.

However, the metal rebounded in Asia this morning amid concerns over the global economic recovery tempted investors to buy gold as a store of value.

Gold for immediate delivery retrieved $3 an ounce to $1,213 as of 10:25 am Vietnamese time.

Crude oil headed down due to unfavorable news coming out of China and the US.

The US Commerce Department said retail sales fell 0.5 percent in June year on year, higher than forecast, after dropping 1.1 percent in May.

China’s economic growth slipped to 10.3 percent in the second quarter, from 11.9 percent in first quarter.

Crude oil due for August-delivery edged down $0.11 a barrel to $77.04 a barrel.

This morning, the liquid hovered around $76.5 a barrel.

The euro exchange rate against the dollar stood at just above $1.27 a euro, almost unchanged from yesterday.

By Kha Lam

Other news