Gold fluctuates; dollar remains stable

The price of gold in Vietnam eroded VND120,000 a tael (1.2 ounces) over the previous day on July 13; the global price declined 1.2 percent.

At most gold shops, the metal was bought at VND28.15 million and sold at VND28.2 million.

Domestic prices were mainly affected by the fluctuating global price. Information that the State Bank of Vietnam would allow importation of gold in near future has not greatly affected the bullion market as domestic prices decreased less than global prices. Jewelers said they had not received permission to import the precious metal. However, some said even if they were granted permission, they would not import gold at this time because the trading gap between domestic and global prices was not enough to ensure profits.

The US dollar exchange rate against the Vietnamese dong on the black market has remained at VND19,200 since last weekend.

At commercial banks, the rate stayed at VND19,100.

Globally, gold once again fell below US$1,200. The metal has hovered around this level for a week.

According to international analysts, the metal’s attractiveness weakened as positive economic information brightened prospects for stock markets and high-yielding currencies. However, investors’ buying helped the metal not to fall more.

Spot gold closed at $1,198.1 an ounce, losing $14.3, or 1.2 percent, in New York.

In Asia, the metal recovered $2 an ounce to just above $1,200 as of 10:30 am Vietnamese time.
 
The US stock markets waited for business reports in second quarter, which are expected to contain positive numbers. Thus, investors shifted their investments to securities.

SPDR Gold Trust, the largest exchange-traded fund backed by bullion, bought 0.3 metric tons of gold, raising its assets to 1,314.8 metric tons. This is the first purchase by the company after selling for 10 straight days.

Many investors also considered $1,200 a reasonable price to buy. However, this activity was not strong enough to help the metal to climb higher, as investors became cautious.

The dollar exchange rate against the euro strengthened to below $1.26 a euro, from above $1.26 yesterday.

Crude oil futures for August delivery stood at $74.6 a barrel from nearly $75 a barrel yesterday.

By Bao Phuong

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