Gold retreats; dollar advances

The price of gold in Vietnam declined by VND100,000 a tael (1.2 ounces) on February 23 as global prices continued to move downward.

Sacombank Jewelery Company bought gold at VND37.61 million and sold at VND37.79 million as of 9 am local time.

Saigon Jewelry Company, the biggest gold shop in Vietnam, bought the precious metal at VND37.65 million and sold at VND37.73 million at the same time.

Meanwhile, Hanoi-based Bao Tin Minh Chau bought gold at VND37.6 million and sold at VND37.77 million.

Domestically, gold fetched VND300,000 a tael higher than global prices.

Gold prices no long rose sharply because the US dollar exchange rate on free market became stable and the rising momentum in global prices faltered.

Dollars were bought at VND22,080 and sold at VND22,150 on free market this morning, an increase of VND30 per dollar in buying price and VND50 in selling price.

Meanwhile, commercial banks continued raising their exchange rates as the interbank US dollar exchange rate surged by VND5 per dollar to VND20,683 on February 23.

State-owned Vietcombank quoted the rate at VND20,790 for buying and VND20,890 for selling.

Internationally, the metal made correction as investors sold gold to cover losses from equities trading after riot in Middle East sank global stock markets in red for several days.

Gold for immediate delivery fell US$7.6 an ounce, or 0.5 percent, to close at $1,400 an ounce on the Comex in New York.

Gold dived to below $1,400 an ounce then recovered to trade above $1,401 an ounce as of 9:45 am Vietnamese time on the trading session in Asia this morning.

Holdings at SPDR Gold Trust, the largest exchange traded fund backed by bullion, reduced by 4.9 metric tons to 1,218.1 metric tons, the lowest level in nine months.

However, bullion remained to be backed by concerns on the political crisis in Middle East and a robust increase in crude oil price.

The euro exchange rate against the greenback went up to nearly $1.37 a euro in Tokyo this morning from $1.36 the previous day.

March-delivery crude oil jumped $7.37 a barrel over last Friday to close at $93.57 a barrel on New York Mercantile Exchange. Earlier, crude oil hit $94.49 a barrel

Crude oil futures for April delivery climbed to near $95.7 a barrel as of 10 am Vietnamese time.

By Sao Khue

Other news