Gold slides VND100,000 per tael

Price of gold in Vietnam dropped VND100,000 a tael (1.2 ounces) over the previous day on January 7 as global price slid due to a stronger US dollar.

Sacombank Jewelry Company bought gold at VND43.15 million and sold at VND43.45 million as of 7:50am Vietnamese time.

Saigon Jewelry Company, the biggest gold processor and trader in Vietnam, collected gold at VND43.2 million and sold at VND43.5 million as of 7:54am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND43.2 million and sold at VND43.5 million as of 8:56am Vietnamese time.

Meanwhile, Bao Tin Minh Chau Jewelry Company quoted the price at VND42.25 million for buying, and VND42.5 million for selling at 1:50pm Vietnamese time.

Trading on bullion market was low as investors became cautious. Most of them chose to stay out of the market and wait for new waves.

Internationally, gold dropped as negative news from Europe, especially from Hungary, overshadowed an optimistic report on the US payrolls, strengthening the US dollar, curbing demand for the precious metal as an alternative asset.

Gold for immediate delivery fell as much as $5 an ounce to close at $1,617 an ounce on the Comex in New York.

Gold futures for February delivery lost $3.3 an ounce, or 0.2 percent, to close at $1,616.8 an ounce.

The US nonfarm payrolls increased 200,000 in December and the unemployment rate dropped to a near three-year low of 8.5 percent, offering the strongest evidence yet the economic recovery was gaining steam.

Meanwhile, Standard & Poor’s, Moody’s Investors Service, and Fitch Ratings rated Hungary below investment grade. The country’s credit rating was downgraded to “junk” after its PM said the country wanted a deal.

The Dollar Index, a basket of six major currencies against the greenback’s strength, rose to 81.271, the highest level since January 2011 as the euro continued to drop to below $1.28 a euro.

By Thuy Doan

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