Gold hovers at VND28.15 million

The price of gold in Vietnam on July 19 changed little over the weekend, staying below VND28.15 million a tael (1.2 ounces).

At most gold shops, the metal was bought at VND28.1 million and sold at nearly VND28.15 million.

Trading on bullion market was muted, as investors considered prices unreasonable to buy or sell.

Domestically, bullion fetched VND330,000 a tael higher than globally. According to gold traders, this is an ideal trading gap level to import the precious metal. However, some firms said that they had yet to receive permission from the State Bank of Vietnam.

On black market, dollars were bought at VND19,180 and sold at VND19,210, an increase of VND40 per dollar.

Commercial banks continued to maintain the dollar exchange rate at VND19,100 per dollar. State-owned Vietcombank purchased the greenback at VND19,090 and sold at VND19,095.

Globally, gold opened the week on downward trend. Last weekend, the metal lost 1.3 percent to close at US$1,193.5 an ounce, after a report showed that consumer prices had fallen for two consecutive months. In addition, US consumer confidence dropped to the lowest level in a year.

In Asia, spot gold was trading at $1,193.05 an ounce, as of 10:15 am Vietnamese time.

Bullion was under debasement pressure caused by the easing of European financial turmoil and a sluggish global economic recovery.

Crude oil extended its losing streak from last weekend, sinking to below $76 a barrel this morning.

The euro exchange rate against the US dollar remained above $1.29 a euro.

By Gia Han

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