Gold poised at VND45.2 million

Price of gold in Vietnam hovered around VND45.2 million per tael (1.2 ounces) on February 25 as global price declined slightly due to profit-taking.

Sacombank Jewellery Company bought gold at VND44.7 million and sold at VND45.2 million as of 9.40 am Vietnamese time.

Saigon Jewellery Company, Vietnam’s biggest gold processor and trader, collected the metal at VND45.02 million and sold at VND45.17 million as of 8.03 am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND45.05 million and sold at VND45.17 million as of 8.15 am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND44 million for buying, and at VND44.25 million for selling at 10 am Vietnamese time.

Gold came off from a three-week high but remained VND350,000 a tael higher than at the beginning of the week.

Domestically, gold fetched around VND700,000 a tael, higher than global price.

Internationally, gold fell as sharp gains from earlier in the week based on economic optimism and a Greek bailout deal prompted investors to take profits.

Spot gold closed week at $1773.6 an ounce, down $6.5 an ounce on Kitco trading floor.

Gold futures for April delivery dropped $9.9 an ounce, or 0.6 per cent, to close at $1,776.4 an ounce. This week, the metal climbed $51 an ounce, or 2.9 per cent.

Bullion posted the biggest weekly gain in four weeks, as expectations for further easing by China and a near-zero interest-rate outlook for the next several years boosted appeal of the metal as a hedge against inflation. 

Besides, news that Europe agreed on a rescue package for Greece to avert a forthcoming default lifted gold along with the euro and other riskier assets. Other investors bought gold on fears of more European monetary easing and lingering doubts about Greece's ability to implement deeper cuts.

Holdings at SPDR Gold Trust, the largest exchange traded fund backed by bullion, increased by 1.81 metric tonnes to 1,284.61 metric tonnes yesterday, the highest level since December 12, 2011.

By Thuy Doan

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