Gold volatile, dollar down

Price of gold in Vietnam climbed to VND42 million a tael (1.2 ounces) on June 26 as global price jumped strongly at the trading session in New York last night on renewed concerns over the debt crisis in Europe after Spain and Cyprus officially asked for bailout from the European Union.

Saigon Jewelry Company, Vietnam’s biggest gold processer and trader, bought the metal at VND41.68 million and sold at VND41.83 million as of 9.35am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND41.75 million and sold at VND41.85 million as of 10.35am Vietnamese time.

Bao Tin Minh Chau Jewelry Company quoted price at VND40.4 million for buying, and at VND40.7 million for selling at 12.20pm Vietnamese time.

Domestically, gold fetched VND1.8 million a tael, higher than global price.

On free market, the US dollar was bought at VND20,920 per dollar, and sold at VND20,940 per dollar, down VND10 per dollar over the previous day.

Meanwhile, Vietcombank bought the greenback at VND20,860 per dollar, and sold at VND20,920 per dollar, a decrease of VND20 per dollar over the previous day.

Eximbank purchased dollars at VND20,850 per dollar, and sold at VND20,900 per dollar, down VND30 per dollar in buying price, and VND40 per dollar in selling price over the previous day.

Internationally, gold rose strongly on rising demand as investors sought for a safe haven as Spain and Cyprus after Ireland, Greece, and Portugal announced that they too were seeking a lifeline for their banks and budgets.

Yesterday, Moody’s Investors Service also cut credit ratings of 28 Spanish banks.

Spot gold rose as much as $13 an ounce, or more than 0.8 percent, to close at $1,586.3 an ounce in New York last night.

In Asia, gold for immediate delivery fell $1.2 an ounce to trade at $1,585.2 an ounce at 9.45am Vietnamese time.

Euro exchange rate against the US dollar was above $1.25 a Euro in Tokyo this morning.

Crude oil futures for July delivery rose $0.08 a barrel to trade at $79.29 a barrel at 10am Vietnamese time.

Investors are eyeing an EU summit meeting later this week. However, uncertainty on whether the key meeting will be able to resolve the region’s sovereign-debt crisis grows, supporting the precious metal.

By Thuy Doan

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