Gold plunges below VND37 million

The price of gold in Vietnam fell below VND37 million a tael (1.2 ounces) on March 16 as global price retreated to below US$1,400 an ounce.

Sacombank Jewelry Company bought the metal at VND36.76 million and sold at VND36.89 million as of 9:45 am local time.

Saigon Jewelry Company, the biggest gold shop in Vietnam, purchased gold at VND36.75 million and sold at VND36.9 million at the same time.

Meanwhile, Hanoi-based Phu Quy Jewelry bought SJC-brand gold at VND36.74 million and sold at VND36.9 million.

The precious metal has lost VND300,000-400,000 per tael over the previous day.

Internationally, gold dived to four-week low as equity markets flooded in red amid rising concerns over radiation leak in Japan. In addition, the meeting between European chief financial officers failed to reach an agreement on method to fund for the European bailout fund. The price was also affected after world’s largest bullion-backed exchange-traded fund announced that its holdings fell for two days in a row.

Gold futures for April delivery eroded $32.1 an ounce, or 2.3 percent, to close at $1,392.8 an ounce, the steepest decline since January 4.

In Asia, the metal fluctuated in a wide range this morning. Spot gold was traded at $1,396.4 an ounce as of 10:17 am Vietnamese time. Earlier, the metal sank to below $1,390 an ounce.

Crude oil declined most since October last year as the US Federal Reserve kept the interest rate and reaffirmed its plan to buy $600 billion of Treasuries through June. Crude oil futures for April settlement dropped $4.01, or 4 percent, to close at $97.18 a barrel, the lowest level since February 28.

Meanwhile, the US Dollar Index, a gauge of six major currencies against the greenback’s strength, rose 0.1 percent to 76.413.

Domestically, the interbank US exchange rate slid VND5 per dollar to VND20,658, while the highest rate applied at commercial banks was VND20,865.

Vietcombank bought the greenback at VND20,860, and sold at VND20,865.

Tensions remained on foreign currency market as banks still failed to meet buyers’ demand though the Government had instructed banks to sell foreign currency to individuals with legitimate need.

By Vinh Nghi

Other news