Gold traded above VND45.2 million

Price of gold in Vietnam surged above VND45.2 million per tael (1.2 ounces) on February 24 as global price edged up slightly.

Sacombank Jewellery Company bought gold at VND45.07 million and sold at VND45.22 million as of 11.05 am Vietnamese time.

Saigon Jewellery Company, Vietnam’s biggest gold processor and trader, collected the metal at VND45.07 million and sold at VND45.22 million as of 10.27 am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND45.15 million and sold at VND45.24 million as of 11.48 am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND44.15 million for buying, and at VND44.4 million for selling at 12.10 pm Vietnamese time.

According to gold traders, investors seemed to be neglectful of the current hike although the heavy metal added around VND400,000 per tael since the beginning of this week. Selling demand increased at some moments but trading volume at big jewellers had not risen significantly.

Saigon Jewellery Company‘s trading volume was just around 1,000 taels of gold yesterday. For this jeweller, this trading volume level is considered pretty low.

“The market had been acquainted with the price level of VND44-46 million a tael, so the price has to be much stronger to boost trading”, said a gold trader in Hanoi.

Domestically, gold fetched around VND500,000 a tael, higher than global price.

Dollars were bought at VND20,810 per dollar, and sold at VND20,830 per dollar on free market, down VND10 per dollar over the previous day.

Some commercial banks marginally raised the dollar exchange rate this morning. Vietcombank bought dollar at VND20,810 per dollar, and sold at VND20,870 per dollar, an increase of VND10 per dollar in buying price, and VND20 per dollar in selling price over the previous day.

Internationally, gold advanced the third consecutive trading session, extending a three-month high, thanks to upbeat economic data from the US and Germany.

Gold for immediate delivery rose as much as $4.3 an ounce to close at $1,781.1 an ounce on the Comex in New York. Earlier, the metal peaked at a three-month high of nearly $1,790 an ounce.

Gold futures for April delivery climbed 0.8 per cent to close at $1,786.3 an ounce. Previously, the yellow metal touched $1,789.5 an ounce, the highest level since November 14, 2011.

Holdings at SPDR Gold Trust, the largest exchange traded fund backed by bullion, increased by 1.209 metric tonnes to 1,282.796 metric tonnes, the highest in more than two months.

However, the European Commission yesterday warned that eurozone is heading to its second recession in three years while the European Union’s economy will stagnate.

In Asia, the metal made correction this morning. Spot gold traded near $1,779 an ounce, down more than $2 an ounce at 10 am Vietnamese time.

The euro exchange rate against the US dollar stood above $1.33 a euro in Tokyo this morning.

By Thuy Doan

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