Rising US dollar sends gold to near VND38 million

The price of gold in Vietnam unexpectedly approached VND38 million a tael (1.2 ounces) on June 17 although global price climbed for two trading sessions in a row.

Most jewelers quoted the prices above VND37.9 million, an increase of VND40,000-50,000 a tael over the previous day.

Sacombank Jewelry Company bought the metal at VND37.87 million and sold at VND37.93 million as of 10 am local time.

Saigon Jewelry Company, the biggest gold shop in Vietnam, purchased gold at VND37.85 million and sold at VND37.93 million.

Meanwhile, the Hanoi-based Phu Quy Jewelry bought SJC-brand gold at VND37.84 million and sold at VND37.92 million at the same time.

Domestically, gold fetched around VND400,000 a tael lower than global price.

According to gold traders, recent rises failed to improve trading on bullion market.

The dollar exchange rates against the Vietnamese dong at commercial banks strongly increased this morning. State-owned Vietcombank bought the greenback at VND20,700 and sell at VND20,800, an increase of VND145 per dollar in buying price and VND185 per dollar in selling price.

Meanwhile, the interbank US dollar exchange rate was still at VND20,618 since last weekend.

Internationally, gold snapped its two-day winning streak, slightly sliding, as economic data released yesterday showed that the US real estate market and job market were better than forecast. However, the European sovereign-debt crisis was still an impending danger.

Gold for immediate delivery dropped as much as $1.4 an ounce over the previous trading session to settle at $1,530.2 an ounce on the Comex in New York.

The metal continued to retreat in the trading session in Asia this morning. Spot gold lost as much as $2.7 an ounce to trade at $1,527.5 an ounce as of 10:25 am Vietnamese time.

The euro exchange rate against the greenback was at nearly $1.42 a euro in Tokyo this morning, unchanged as of the previous day.

Crude oil futures for August settlement slid as much as $0.12 a barrel to trade at $94.83 a barrel as of 10:50 am Vietnamese time.

By Quy Doan

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