Gold slides, dollar rebounds

Price of gold in Vietnam dropped by VND100,000 a tael (1.2 ounces) over the previous day on April 24 while global price continued to maintain weak losing momentum.

Sacombank Jewellery Company bought gold at VND42.68 million and sold at VND42.76 million as of 8am Vietnamese time.

Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, collected the metal at VND42.54 million and sold at VND42.74 million as of 9.10am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND42.67 million and sold at VND42.76 million as of 9.28am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND41.95 million for buying, and at VND42.25 million for selling at 12.15pm Vietnamese time.

Domestically, gold fetched around VND1.6 million a tael, higher than global price.

Gold traders said that buying demand improved significantly yesterday after local gold showed signs of recovery.

On free market, dollars were bought at VND20,840 per dollar, and sold at VND20,860 per dollar, an increase of VND10 per dollar over the previous day.

The dollar exchange rate at commercial banks also rebounded after stalling for several days. Vietcombank bought the greenback at VND20,840 per dollar, and sold at VND20,890 per dollar, up VND20 per dollar over the previous day.

Internationally, gold continued marching south as renewed concerns over the European sovereign debt crisis strengthened the US dollar, curbing demand for the precious metal as an alternative asset.

Netherlands which strongly backed an EU fiscal treaty and lectured Greece in getting its finances in order was facing a risk to be swept into the regional debt crisis after Prime Minister Mark Rutte tendered his resignation on Monday over budget cuts, creating a political vacuum in the country.

Dutch and peripheral eurozone bonds sold off on Monday as the political crisis in the Netherlands heightened fear about a eurozone debt crisis.

Gold for immediate delivery dropped as much as $4.1 an ounce to close at $1,639.3 an ounce in New York last night. Earlier, the metal plunged to $1,622 an ounce, the lowest level in two and a half weeks.

Spot gold lost $1.5 an ounce to trade at $1,637.8 an ounce at 10.15am Vietnamese time.

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

Crude oil futures for June delivery slid $0.08 a barrel to trade at $103.03 a barrel on the New York Mercantile Exchange at 10.15am Vietnamese time.

By Thuy Doan

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