Gold rebounds after sharp drop

After global gold price sank to the lowest level in the past three months, price of gold in Vietnam dropped VND300,000 a tael (1.2 ounces) but immediately recovered VND100,000 a tael later on April 5.

Sacombank Jewellery Company bought gold at VND43.3 million and sold at VND43.38 million as of 9.15am Vietnamese time.

Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, collected the metal at VND43.35 million and sold at VND43.55 million as of 10.33am Vietnamese time, the lowest price since March 21.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND43.47 million and sold at VND43.57 million as of 10.25am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND41.45 million for buying, and at VND41.75 million for selling at 10.55am Vietnamese time.

Domestically, gold fetched around VND2.7 million a tael, higher than global price.

Bullion market remained gloomy as changes in price were not attractive enough for investors to buy or sell gold.

The Government has just officially promulgated regulations on controlling trading of gold, starting May 25. Accordingly, the government will monopolize production of bullion bar, importing and exporting material for gold bar production. Besides, individuals and organisations can only buy or sell gold at credit institutions and businesses which are allowed to trade bullion by the government.

Moreover, the State Bank of Vietnam also ordered Asia Commercial Bank, Saigon Thuong Tin Commercial Bank, Dong A Bank, Vietnam Export and Import Bank, and Vietnam Technological and Commercial Bank along with Saigon Jewellery Company to report on setting a network for trading of gold.

On free market, dollars were bought at VND20,820-20,830 per dollar, and sold at VND20,840-20,850 per dollar, up VND10-20 per dollar from the previous day. 

Meanwhile, Vietcombank still kept the rate at VND20,800 for buying, and VND20,860 for selling.

Internationally, gold edged up at the trading session in Asia this morning after steeply slumping for two consecutive trading sessions in New York.

Gold for immediate delivery fell as much as $2.9 an ounce to trade at $1,624.3 an ounce at 9.50am Vietnamese time.

Yesterday, the heavy metal dropped $25.4 an ounce, or 1.5 per cent, to close at $1,621.4 an ounce in New York, the lowest level in twelve weeks. Earlier, the metal shrank to $1,611 an ounce.

A job market report said on Wednesday that US businesses added more than 200,000 jobs in March, providing more evidence of recovery.

Adding to gold's woes, the euro fell to a three-month low against the dollar after a poorly received Spanish government bond sales raised worries about the eurozone debt crisis.

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

Crude oil futures for May delivery rose $0.63 a barrel to trade at $102.1 a barrel at 10am Vietnamese time.

By Thuy Doan

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