Gold retreats a bit

Price of gold in Vietnam retreated to below VND44.7 million per tael (1.2 ounces) on March 6 as global price dropped slightly.

Sacombank Jewellery Company bought gold at VND44.52 million and sold at VND44.67 million as of 10am Vietnamese time.

Saigon Jewellery Company, Vietnam’s biggest gold processor and trader, collected the metal at VND44.52 million and sold at VND44.67 million as of 10.12am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND44.59 million and sold at VND44.68 million as of 9.43am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND43.45 million for buying, and VND43.7 million for selling at 11.20am Vietnamese time.

Since last weekend, a decline in price prompted investors to buy gold. However, gold traders said that buyers were mostly small investors so they could not help improve in trading volumes.

Representatives of the Phu Quy Jewellery Company said that 80 per cent of their customers visited the store to buy gold but bought a limited volume. A wide gap between global and local gold prices might prevent big investors from joining the market at this moment.

Domestically, gold fetched around VND1.9 million a tael, higher than global price as the former failed to fully reflect a decline in the latter.

The greenback was bought at VND20,800 per dollar for buying, and at VND20,820 per dollar for selling, unchanged as of the previous day, on free market this morning.

Meanwhile, Vietcombank bought US dollar at VND20,800 per dollar, and sold at VND20,860 per dollar, up VND10 per dollar over the previous day.

Internationally, gold went down after China announced yesterday that it would lower economic growth target for this year, weighing on sentiment.

Gold for immediate delivery lost as much as $4.6 an ounce to close at $1,707.4 an ounce on the Comex in New York. Earlier, the heavy metal sank to $1,690 an ounce.

In Asia, spot gold was traded at $1,704.8 an ounce, down $2.8 an ounce at 10.40am Vietnamese time.

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

By Thuy Doan

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