Gold sinks VND400,000 per tael

The price of gold in Vietnam plunged by VND400,000 a tael (1.2 ounces) on July 20 as global price made sharp correction on profit-taking.

Most gold shops bought gold at VND39.25 million and sold at VND39.35 million. Yesterday, the precious metal topped an all-time high of VND39.72 million a tael.

Sacombank Jewelry Company bought the metal at VND39.26 million and sold at VND39.34 million at the opening time.

Hanoi-based Phu Quy Jewelry Company bought SJC-brand gold at VND39.25 million and sold at VND39.35 million.

Domestically, gold fetched VND100,000 lower than global price. The gap between domestic and global prices became smaller as selling demand weakened.

On the foreign currency exchange market, the rate stood steadily at VND20,550 for buying and VND20,600 for selling at Vietcombank. The inter-bank exchange rate was unchanged at VND20,608 per dollar for several days.

Internationally, gold dropped from record after President Barack Obama backed a plan to cut the deficit, potentially paving the way for raising the US debt ceiling and avoiding default.

Obama called the $3.7 trillion debt-cutting proposal by a bipartisan group of senators “broadly consistent” with what he’s sought and “a very significant step” in so-far deadlocked negotiations. The plan would combine tax increases and spending cuts and may allow policy makers to agree on raising the $14.3 trillion debt ceiling before a potential default on August 2.

Gold for immediate delivery fell as much as $16.3 an ounce to close at $1,589.8 an ounce on the Comex in New York.

In Asia, the metal faintly fluctuated in the trading session this morning. Spot gold swung between $1,588 and $1,590 an ounce.

SPDR Gold Trust, the largest bullion-backed exchange-traded fund, sold 3.2 metric tons, reducing its holdings to 1,246.1 metric tons. The company net bought 44 metric tons in the past 10 days.

In Tokyo, the euro exchange rate against the US dollar was at nearly $1.42 a euro this morning.

Crude oil rose due to global stock markets’ rallies. Crude oil futures for August settlement advanced $1.57 a barrel to close at $97.5 a barrel on the New York Mercantile Exchange.

This morning, crude oil inched up $0.85 a barrel to trade at $98.35 a barrel as of 9 am Vietnamese time.

By Linh Nga

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