Gold, dollar wane

After rising to the highest level in the past month, the price of gold in Vietnam retreated to around VND42.4 million a tael (1.2 ounces) on June 7, while black market US dollar also dropped by VND20 per dollar over the previous day.

Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, bought the metal at VND42.2 million and sold at VND42.4 million as of 11am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND42.29 million and sold at VND42.43 million as of 11.30am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND41.25 million for buying, and at VND41.55 million for selling at 12.50pm Vietnamese time.

Domestically, gold fetched VND1.4 million a tael, higher than global price.

On free market, the US dollar weakened over the previous day. The greenback was bought at VND21,000 per dollar, and sold at VND21,030 per dollar, down VND20 per dollar from the previous day.

Meanwhile, Vietcombank bought the greenback at VND20,976 per dollar, and sold at VND21,036 per dollar, an increase of VND10 per dollar in buying price over the previous day.

Eximbank quoted the rate at VND20,940 for buying, and VND21,036 for selling, a drop of VND10 per dollar in buying price from the day before.

Internationally, gold edged up with investors hoping that the US central bank would take action to stimulate the world’s largest economy, ahead of the testimony of the US Federal Reserve chairman Ben Bernanke in front of Congress.

In Asia, spot gold gained $0.4 an ounce to trade at $1,621.1 an ounce at 10.20am Vietnamese time.

Gold for immediate delivery rose as much as $2.8 an ounce to close at $1,620.7 an ounce in New York, though it soared to a one-month high of $1,642 an ounce earlier.

In its latest "Beige Book" summary of business activity covering the period between early April and late May released yesterday, Fed said that economic growth picked up over the last two months while job market showed signs of a modest increase. However, investors still hoped that Fed would launch another round of quantitative easing.

Meanwhile, European Central Bank decided to keep its benchmark interest rate and did not draw any instant solution to resolve the debt crisis.

Euro exchange rate against the US dollar rose near a two-week high at nearly $1.26 a Euro in Tokyo this morning.

Crude oil futures for July delivery added up $0.45 a barrel to trade at $85.47 a barrel at 10.30am Vietnamese time.

By Thuy Doan

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