Gold closes week with sharp fall

The price of gold in Vietnam lost by VND150,000 a tael (1.2 ounces) on June 11 as global price ended week with a sharpest drop in one month.

Sacombank Jewelry Company bought the metal at VND37.76 million and sold at VND37.84 million as of 11 am local time.

Meanwhile, the Hanoi-based Phu Quy Jewelry bought SJC-brand gold at VND37.77 million and sold at VND37.85 million at the same time.

According to gold traders, trading on bullion market remained muted. However, trading tended to improve when the prices rose as people went to gold shops to sell the metal to take profits. Most people no longer buy gold as an investment as they are wary of the authorities’ measures to control bullion market.

Domestically, gold fetched around VND400,000 a tael lower than global price.

The dollar exchange rates against the Vietnamese dong at commercial banks were unchanged as of the previous day. State-owned Vietcombank bought the greenback at VND20,530 and sell at VND20,600.

Meanwhile, the interbank US dollar exchange rate split another VND5 per dollar to trade at a new record low of VND20,618.

Internationally, gold dropped at a steepest pace in one month as a stronger US dollar eroded the appeal of the precious metal as an alternative asset, while investors sold gold to take profits of previous gains.

Gold for immediate delivery fell as much as $12.2 an ounce over the previous trading session, or 0.8 percent, to settle at $1,533.1 an ounce on the Comex in New York.

Holdings at SPDR Gold Trust, the largest exchange traded fund backed by bullion, reduced by 12 metric tons to 1,201 metric tons, the company website showed.

The euro sometime declined by 1 percent against the US dollar in the trading session due to reawakening concerns over the Europe’s sovereign debt turmoil. The European Central Bank signaled that it opposed the second rescue package for Greece.

The euro exchange rate against the greenback closed week at $1.43 a euro. This week, the US dollar gained 2 percent over last week.

Crude oil futures for July settlement slid as much as $2.64 a barrel to close at $99.29 a barrel on the New York Mercantile Exchange after Saudi Arabia said it would increase oil production next month.

By Vinh Nghi

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