Gold slides over Greek debt woes

Price of gold in Vietnam retreated to below VND45 million a tael (1.2 ounces) on February 7 as global price dipped on concerns over the Greece debt crisis.

Sacombank Jewellery Company bought gold at VND44.6 million and sold at VND44.9 million as of 8:45 am Vietnamese time.

Saigon Jewellery Company, Vietnam’s biggest gold processor and trader, collected the metal at VND44.6 million and sold at VND44.9 million as of 8 am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND44.75 million and sold at VND44.93 million as of 8:46 am Vietnamese time.

Meanwhile, Bao Tin Minh Chau Jewellery Company quoted price at VND43.75 million for buying, and VND44 million for selling at 9:25 am Vietnamese time.

Domestically, gold fetched around VND1.3 million a tael, higher than global price.

Some customers have started to sell gold, taking advantage of the high price. In the trading session yesterday, trading volume of DOJI Gold and Gems Group in Hanoi and other northern provinces reached around 1,300 taels of gold, of which buying volume accounted to 60 per cent. Sacombank Jewellery Company traded 900 taels, of which 500 taels were selling volume.

Dollars were bought at VND20,950 per dollar, and sold at VND20,970 per dollar on black market in Hanoi, a decrease of VND30 per dollar in buying price, and VND40 per dollar in selling price over the previous day. At this level, black market dollars were lower than bank dollars.

Vietcombank bought the greenback at VND20,920 per dollar, and sold at VND20,990 per dollar. Eximbank quoted prices at VND20,900 for buying, and VND21,000 for selling this morning.

Internationally, gold declined as the US dollar strengthened after Greece’s government failed to convince party leaders to extend spending cuts to receive the next bailout package to drive the city out of a chaotic debt default, sapping demand for the precious metal as an alternative asset.

Yesterday, Greece delayed its decision on accepting the terms of a new bailout for another day.

Gold futures for April delivery fell as much as $15.4 an ounce, or 0.9 per cent, to close at $1,724.9 an ounce.

Gold for immediate delivery dropped $5 an ounce to close at $1,720 an ounce on the Comex in New York.

In Asia, the metal tended to resume gain this morning. Spot gold was traded at $1,722.7 an ounce, up nearly $3 an ounce at 8:45 am Vietnamese time.

The euro exchange rate against the US dollar was above $1.31 a euro in Tokyo this morning.

By Thuy Doan

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