Bullion lightly slides; dollar rallies

The price of gold in Vietnam fell by VND150,000 per tael (1.2 ounces) over the previous day on October 14 whereas global price was retained in a narrow range and had not showed clear direction.

Sacombank Jewelry Company bought gold at VND43.76 million and sold at VND43.99 million at 11:20 am local time.

Saigon Jewelry Company, the biggest gold processor and trader in Vietnam, quoted the price at VND43.75 million for buying, and VND44 million for selling in Ho Chi Minh City.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND43.93 million and sold at VND44.18 million at 1:15 pm local time.

Domestically, gold remained fetching around VND2 million a tael higher than global price.

The State Bank of Vietnam added another VND10 per dollar into the interbank exchange rate this morning, sending the rate to a five-month high of VND20,688 per dollar. Vietcombank bought dollars at VND20,890, and sold at VND20,895.

Meanwhile, dollars were bought at VND21,380 per dollar, and sold at VND21,450 per dollar on free market, an increase of VND60 per dollar in buying price and VND30 per dollar in selling price over the previous day.

International, gold dropped as equities declined and the US dollar strengthened, curbing demand for the precious metal as an alternative asset.

Gold for immediate delivery fell as much as more than $7.9 an ounce, or 0.5 percent, to close at $1,667.6 an ounce on the Comex in New York.

Experts said the heavy metal would not surpass $1,700 an ounce or sink below $1,600 an ounce until investors have an obvious insight into the Europe’s sovereign-debt crisis and a potential recession in the US economy.

In Asia, gold faintly fluctuated this morning. Spot gold declined $1 an ounce to trade at $1,666.6 an ounce at 11:10 am Vietnamese time.

The euro exchange rate against the US dollar was nearly $1.38 a euro in Tokyo at 11:15 am Vietnamese time.

Crude oil futures lost $0.09 a barrel to trade at $84.14 a barrel on the New York Mercantile Exchange at the same time.

By Thuy Doan

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