Gold closes week lower due to uncertainty in Greece

Price of gold in Vietnam declined for three consecutive days to around VND44.75 million a tael (1.2 ounces) on February 11 as global price fell due to stagnant Greek bailout talks.

Sacombank Jewellery Company bought gold at VND44.35 million and sold at VND44.75 million as of 8 am Vietnamese time.

Saigon Jewellery Company, Vietnam’s biggest gold processor and trader, collected the metal at VND44.53 million and sold at VND44.83 million as of 8 am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND44.65 million and sold at VND44.8 million as of 9.12 am Vietnamese time.

Meanwhile, Bao Tin Minh Chau Jewellery Company quoted price at VND43.75 million for buying, and VND44.05 million for selling at 9.33 am Vietnamese time.

Domestically, gold fetched around VND1.5 million a tael, higher than global price.

Internationally, gold dropped as uncertainty over negotiations for a rescue package for Greece prompted investors to sell gold and hoard cash.

Gold futures for April delivery fell as much as $15.9 an ounce, or 0.9 per cent, to close at $1,725.3 an ounce on the Comex in New York. Trading volume reached the highest level in a week.

Immediate-delivery gold lost 0.6 per cent to close at $1,722.1 an ounce, posting a second straight weekly loss.

Doubt on the possibility that Greece would avoid default increased after European financial ministers asked Greek policy makers to pass the latest austerity package into law before releasing the 130-billion-euro rescue package. The European Union expected the Greek government to specify a further 325 million euros ($430 million) of spending cuts before it agrees to the 130-billion-euro bailout.

However, some lawmakers have said that they would vote against it and thousand of Greeks were out on the streets in protest. Greek lawmakers will vote this weekend on a controversial austerity bill that Athens needs, to avoid a default.

By Thuy Doan

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