Gold falls VND300,000 per tael

Price of gold in Vietnam only dropped by VND300,000 a tael (1.2 ounces) on June 22 although global price experienced the steepest decline since late February after Moody’s Investors Service downgraded credit ratings of 15 biggest banks in the world.

Saigon Jewelry Company, Vietnam’s biggest gold processer and trader, bought the metal at VND41.55 million and sold at VND41.7 million as of 10.51am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND41.61 million and sold at VND41.72 million as of 10.55am Vietnamese time.

Bao Tin Minh Chau Jewelry Company quoted price at VND40.5 million for buying, and at VND40.8 million for selling at 11am Vietnamese time.

Domestically, gold fetched VND2.2 million a tael, higher than global price.

US dollar exchange rate continued to drop this morning. On free market, the US dollar was bought at VND20,920 per dollar, and sold at VND20,940 per dollar, down another VND10 per dollar over the previous day.

Meanwhile, Vietcombank bought the greenback at VND20,880 per dollar, and sold at VND20,940 per dollar, a decrease of VND20 per dollar in buying price, and VND10 per dollar in selling price from the previous day.

Eximbank also purchased dollars at VND20,880, and sold at VND20,940 per dollar, up VND10 per dollar over the previous day.

Internationally, gold plunged steeply after credit ratings of 15 biggest global banks, including Credit Suisse, Morgan Stanley, Bank of America Corp, Citigroup, Goldman Sachs Group, Barclays, BNP Paribas, Royal Bank of Canada, JPMorgan Chase, Credit Agricole, Deutsche Bank, Royal Bank of Scotland, and Societe Generale, were lowered by one to three notches by Moody’s Investors Service.

Data released on Thursday showed a slowdown in Chinese, European, and US manufacturing activity, highlighting fears about weaker global growth, prompting investors to seek safety in the US dollar.

In Asia, spot gold lost $1.2 an ounce to trade at $1,565 an ounce at 8.35am Vietnamese time.

Last night, gold for immediate delivery fell as much as $41.6 an ounce, or 2.6 percent, to close at $1,566.2 an ounce on Kitco trading floor in New York.

Gold futures for August delivery sank $50.2 an ounce to close at $1,565.6 an ounce on the Comex.

Euro exchange rate against the US dollar was at below $1.26 a Euro in Tokyo this morning.

Crude oil futures for July delivery rose $0.26 a barrel to trade at $78.46 a barrel at 8.35am Vietnamese time. Last night, crude oil lost 3.5 percent.

By Thuy Doan

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