Bottom fishing rescues gold from nine-month low

Price of gold in Vietnam averted sinking to below VND41 million a tael (1.2 ounces) on May 10 while global price also edged up after three days of losses.

Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, bought the metal at VND41.49 million and sold at VND41.64 million as of 10.23am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND41.54 million and sold at VND41.65 million as of 11.06am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND40.95 million for buying, and at VND41.25 million for selling at 11.10am Vietnamese time.

Gold traders said that buying demand started to rise swiftly around 10am yesterday morning until the end of the day, saving the heavy metal from the lowest level since early August last year although global price maintained losing momentum.

Yesterday, Saigon Jewellery Company bought 2,800 taels of gold, and sold 3,200 taels. Although trading volume dropped slightly over the previous day, Nguyen Cong Tuong, deputy director of Sales Department of SJC, said that many investors who sold gold on previous days came back to buy gold when the metal hit a nine-month low.

Domestically, gold fetched VND1.6-1.7 million a tael, higher than global price.

On free market, dollars were bought at VND20,830 per dollar, and sold at VND20,850 per dollar, down VND10 per dollar over the previous day.

Meanwhile, Vietcombank bought the greenback at VND20,820 per dollar, and sold at VND20,870 per dollar, a decrease of VND10 per dollar from the previous day.

Internationally, gold fell nearly 1 per cent at the trading session in New York last night as investors panicked due to political deadlock in Greece. Moreover, concerns over financial health of Spanish banks also urged investors to dump risk assets like securities, and basic commodities while buying demand from Asia was not strong enough to support gold price.

Gold for immediate delivery fell as much as $15.4 an ounce to close at $1,590.4 an ounce in New York last night.

In Asia, the heavy metal recovered slightly this morning, rebounding $1.7 an ounce to trade at $1,592.1 an ounce at 10.15am Vietnamese time.

The euro exchange rate against the US dollar remained below $1.3 a euro in Tokyo this morning.

Crude oil futures for June delivery slipped $0.12 a barrel to trade at $96.69 a barrel at 10.25am Vietnamese time.

By Thuy Doan

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