Gold down while dollar rises

Price of gold in Vietnam declined to below VND43 million a tael (1.2 ounces) on April 27 although global price rose sharply at the trading session in New York last night.

Sacombank Jewellery Company bought gold at VND42.92 million and sold at VND43.07 million as of 7.50am Vietnamese time.

Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, collected the metal at VND42.77 million and sold at VND42.97 million as of 10.15am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND42.88 million and sold at VND42.98 million as of 11.30am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND42.3 million for buying, and at VND42.6 million for selling at 11.30am Vietnamese time.

Yesterday, when the metal hit a ten-day high at VND43.1 million a tael, people increased sale of gold instead of buying, causing gold to fall, despite a rising trend in global price.

Domestically, gold fetched around VND1.2 million a tael, higher than global price.

The dollar exchange rate climbed strongly in both bank and black markets.

On free market, dollars were bought at VND20,860 per dollar, and sold at VND20,880 per dollar, up VND20 per dollar over the previous day.

Meanwhile, Vietcombank bought the greenback at VND20,830 per dollar, and sold at VND20,900 per dollar, an increase of VND20 per dollar in selling price from the previous day.

Internationally, gold bounced thanks to rising demand on expectations that the US Federal Reserve could do more to lift the country’s economy if necessary. However, gold remained under depreciation pressure due to financial uncertainties in Europe.

Gold for immediate delivery rose as much as $12.8 an ounce, or 0.8 per cent, to close at $1,658.1 an ounce in New York last night.

In Asia, the metal retreated slightly at the trading session this morning on news that Standard & Poor’s had downgraded Spain’s credit rating while Netherlands were struggling to cut budget after its government resigned. Spot gold dropped $1.2 an ounce to trade at $1,656.9 an ounce at 10.15am Vietnamese time.

The euro exchange rate against the US dollar was above $1.32 a euro in Tokyo this morning.

Crude oil futures for June delivery slid $0.4 a barrel to trade at $104.15 a barrel at 10.30am Vietnamese time.

By Thuy Doan

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