Gold recovers on rising demand

The price of gold in Vietnam rose by VND300,000 a tael (1.2 ounces) over the previous day on November 25 although global prices remained static  because of markets closing for Thanksgiving.

Customers buy gold at a SJC gold shop. (Photo: SGGP)

Sacombank Jewelry Company (SBJ) bought gold at VND44.6 million and sold at VND44.8 million as of 10:05am Vietnamese time.

Saigon Jewelry Company (SJC), the biggest gold processing and trading company in Vietnam, collected gold at VND44.55 million and sold at VND44.75 million around 11:20am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND44.6 million and sold at VND44.8 million at 11:37am Vietnamese time.

Bao Tin Minh Chau Jewelry Company quoted the price at VND44.35 million for buying and VND44.55 million for selling at 12:44pm Vietnamese time.

Domestic gold fetched more than VND1.55 million a tael, higher than global price.

Although trading in other gold shops remained muted, SJC gold shops enjoyed large customers as the company was selling gold at lower prices under instructions of State Bank of Vietnam, to stabilize bullion market.

According to Nguyen Cong Tuong, deputy sales manager of SJC, the company sold 20,000 taels of gold yesterday. Meanwhile, SBJ said that it traded within 1,500 taels yesterday.

On the black market, one dollar was bought at VND21,260 and sold at VND21,310, a decrease of VND10 per dollar over the previous day.

Internationally, gold rose slightly as concerns over a worsening European sovereign-debt crisis boosted demand for the precious metal as an alternative asset.

Yesterday, Fitch Ratings lowered Portugal’s credit rating to BB+ from BBB-. Earlier, Moody’s Investors Service warned of France credit ratings.

Gold for immediate delivery gained as much as $2.5 an ounce to close at $1,695.8 an ounce on the Comex in New York.

In Asia, spot gold slid $0.8 an ounce to trade at $1,695 an ounce at 10:35am Vietnamese time.

The euro exchange rate against the US dollar was $1.33 a euro in Tokyo this morning.

By Thuy Doan

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