Gold makes strong recovery

Price of gold in Vietnam recovered to nearly VND43 million a tael (1.2 ounces) on April 25 while global price treaded water on thin trade as investors were awaiting hints of another round of quantitative easing when the US Federal Reserve ends its two-day meeting.

Sacombank Jewellery Company bought gold at VND42.84 million and sold at VND42.9 million as of 8.40am Vietnamese time.

Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, collected the metal at VND42.72 million and sold at VND42.92 million as of 9.17am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND42.85 million and sold at VND42.94 million as of 10.42am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND42.07 million for buying, and at VND42.37 million for selling at 11.25am Vietnamese time.

Domestically, gold fetched around VND1.6-1.8 million a tael, higher than global price.

Jewellers said buying demand increased significantly since the beginning of this week with buyers accounting for 70 per cent of total customers. However, they were still cautious and waiting for the global price to show its tendency, as well as the effect of Decree 24, on controlling trading of gold in local bullion market, after it takes effect on May 25.

On free market, dollars were bought at VND20,840 per dollar, and sold at VND20,860 per dollar, unchanged from the previous day.

Meanwhile, Vietcombank bought the greenback at VND20,830 per dollar, and sold at VND20,880 per dollar, down VND10 per dollar over the previous day.

Internationally, gold regained as the greenback weakened due to disappointing data on the US housing market and consumer confidence.

Gold for immediate delivery rose as much as $3.2 an ounce to close at $1,642.5 an ounce in New York last night, the highest level in the past week.

In Asia, the metal edged up slightly at the beginning of the trading session but soon declined. Spot gold dipped $0.1 an ounce to trade at $1,642.4 an ounce at 10.30am Vietnamese time.

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

By Thuy Doan

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