Gold rebounds after holidays

Price of gold in Vietnam recovered to around VND43.4 million a tael (1.2 ounces), an increase of VND1.6 million a tael over the last trading session of the year 201, on January 3 as global prices continued to climb higher.

Sacombank Jewelry Company bought gold at VND42.95 million and sold at VND43.45 million as of 2:45pm Vietnamese time.

Saigon Jewelry Company, the biggest gold processing and trading company in Vietnam, collected gold at VND43.15 million and sold at VND43.45 million as of 2:32pm Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND43.25 million and sold at VND43.6 million at 2:45pm Vietnamese time.

Meanwhile, Bao Tin Minh Chau Jewelry Company quoted the price at VND42.15 million for buying, and VND42.5 million for selling at 3pm Vietnamese time.

Domestically, SJC-brand gold still fetched around VND2.63 million a tael, higher than global price.

Local gold price was supported by a strong gain in black-market dollar exchange rate and global price.

On free market, one dollar was bought at VND21,250 per dollar, and sold at VND21,280 per dollar, an increase of VND70 per dollar in buying price, and VND80 in selling price over last weekend.

Meanwhile, the State Bank of Vietnam kept the interbank exchange rate at VND20,628 per dollar since December 24. Vietcombank bought the greenback at VND21,030, and sold at VND21,036.

Internationally, gold advanced as investors started to return to the market after the holidays.

Immediate-delivery gold was traded at $1,589.2 an ounce in Hong Kong at 2:15pm Vietnamese time.

However, the yellow metal remained under pressure as the euro weakened against the US dollar. The euro exchange rate was below $1.3, the lowest level since February 2011, in Tokyo this morning.

Analysts concerned that gold might drop sharply in the first half of this year, affected by the European sovereign-debt crisis, and the euro exchange rate against the US dollar.

By Thuy Doan

Other news