The price of gold fell below VND27 million a tael in Vietnam on January 13 as global prices dropped the most in three weeks after an advance to one-month high urged investors selling the metal to turn profits.
Most gold shops bought at VND26.85 million and sold at VND26.9 million, a decrease of VND250,000 a tael over the previous day.
A muted bullion market prompted gold traders to maintain a low trading gap to boost trading despite a strong global price decline.
Trading volumes on gold exchanges were thin with around 12,500 taels changing hands at VND25-26 million a tael on the SBJ trading floor, and 6,100 taels on the ACB floor by 10:10 am in the wake of a Government decision December 30, 2009 to halt gold trading in the New Year.
Globally, gold sank to a three-month low as a stronger dollar eroded the appeal of the precious metal as a store of value.
Gold for immediate delivery fell as much as US$22.90 an ounce, 2 percent, to $1,128.80 in New York.
In Asia, the metal rose slightly to $1,130 an ounce this morning.
SPDR Gold Trust, the largest exchange-traded fund backed by bullion, sold 3.7 metric tons, sending its holdings to 1,115.9 metric tons. Despite speculation on a rising trend of the precious metal in the first quarter, the firm continuously sold without buying back.
Analysts said investors would increase buying when prices slid to around $1,120 an ounce.
The US stock markets slumped yesterday after receiving information that the government would raise taxes on the banking industry to make up the federal budget deficit, prompting investors to seek safety in the greenback.
The US Dollar Index, a six-currency gauge of the greenback’s value, rose 0.4 percent then lost 0.2 percent yesterday.
The dollar exchange rate against the euro was at nearly $1.45.
The dollar remained under debasement pressure caused by an uncertain recovery of the US economy. However, it could recover during a period when unfavorable information affects the stock markets.
Crude oil headed for the biggest loss since December 9 last year as unusual freezing weather in the northern hemisphere is beginning to end while China began applying a tight monetary policy.
Crude oil futures for February settlement dropped $1.73 a barrel, 2.1 percent, to close at $80.79 a barrel.
In Asia, crude oil fell to below $80 a barrel this morning.