Gold approaches VND28 million

The price of gold in Vietnam surged by VND140,000-180,000 a tael (1.2 ounces) over previous day on May 27 as global price continued to rise based on demand for alternatives to the euro.

As of 9 am this morning Saigon Jewelry Co. (SJC), Vietnam’s biggest gold shops, bought at VND27.88 million and sold at VND27.95 million, VND180,000 higher than previous day.

At Hanoi-based Phu Quy Jewelry Co., SJC-brand-gold was bought at VND27.89 million and sold at VND27.98 million. Meanwhile, other dealers of SJC fixed a same level as of those in Ho Chi Minh City.

Sacombank Jewelry Co. purchased gold at VND27.92 million and sold at VND27.94 million.

The dollar price on free market remained nearly unchanged as the selling price remained at VND19,010 a dollar while buying rose by VND10 per dollar to VND18,990.

State-owned Vietcombank purchased dollars at VND18,950 and sold at VND19,020.

On world market, bullion climbed to one week high as rising Europe’s debt crisis, which will slow growth and depress the shared currency, prompted investors to seek the metal as a haven to protect their wealth.

Spot gold rose as much as US$8.9 an ounce, or 0.8 percent, to close at $1,211.6 on the New York Mercantile Exchange.

In Asia, however, profit-taking sent the metal to $1,215 an ounce by 10:10 am Vietnamese time. Earlier the metal had surpassed $1.220.

SPDR Gold Trust bought another 0.3 metric tons, increasing its holdings to a record 1,267.6 metric tons.

Investors have gradually lost confidence in the euro, causing the shared currency fall to a four-year low against the US dollar and near nine-year low against the yen.

The euro exchange rate dropped to near $1.22 a euro from $1.23 yesterday.

Crude oil climbed quickly after a report showed that gasoline consumption in the US rose while the number of long-term contracts also increased.

July-delivery of crude oil rose as much as $2.76 a barrel, or 4 percent, to $71.51 a barrel, representing the biggest gain of crude oil since September last year.

However, crude oil sank to below $71 a barrel this morning.

Compiled by Thuy Doan

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