Gold inches up ahead of Bernanke testimony

Price of gold in Vietnam surged to VND41.9 million a tael (1.2 ounces) on July 17 in response to a sharp gain in global price ahead of the US Federal Reserve chairman’s testimony.

Saigon Jewelry Company, Vietnam’s biggest gold processer and trader, bought the metal at VND41.72 million and sold at VND41.87 million as of 10am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND41.81 million and sold at VND41.88 million as of 10.55am Vietnamese time.

Bao Tin Minh Chau Jewelry Company quoted price at VND40.3 million for buying, and at VND40.6 million for selling at noon Vietnamese time.

Domestically, gold fetched VND1.7 million a tael higher than global price. Domestic gold still patiently maintained a wide gap with global price although Decree 24 for controlling trading of gold has taken effect for nearly two months.

On free market, the US dollar was bought at VND20,870 per dollar, and sold at VND20,890 per dollar, a drop of VND10 per dollar over the previous day.

Meanwhile, Vietcombank quoted the rate at VND20,840 per dollar for buying, and at VND20,870 per dollar for selling, down VND5 per dollar from the previous day.

Eximbank purchased dollars at VND20,820 per dollar, and sold at VND20,870 per dollar, a decrease of VND20 per dollar in selling price over the previous day.

Internationally, gold rose significantly at the trading session in Asia after almost moving flat at the trading session in New York ahead of the Fed chairman’s testimony in front of Congress which is expected to provide clues on whether the US Central Bank would launch another round of quantitative easing.

In Asia, gold for immediate delivery surged $6.2 an ounce to trade at $1,595.8 an ounce at 9am Vietnamese time.

Last night, spot gold lost $0.8 an ounce to close at $1,589.6 an ounce in New York.

Data released yesterday showed that US retail sales in June fell for a third consecutive month, suggesting that the US economic growth might be faltering.

International Monetary Fund cut its global economic growth forecast and warned that the outlook might worsen if policymakers in the eurozone did not act with enough force and speed to quell the region’s debt crisis.

Euro exchange rate against the US dollar rose to $1.23 a Euro in Tokyo this morning.

Crude oil futures for August delivery gained $0.22 a barrel to trade at $88.65 a barrel at 9am Vietnamese time.

By Thuy Doan

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