Bullion plummets further

Price of gold in SJC stores in Ho Chi Minh City fell by VND100,000 a tael this morning, affected by losing momentum in global price.

Price of gold in SJC stores in Ho Chi Minh City falls by VND100,000 a tael this morning due to losing momentum in global price (Photo: A. Quan)

As of 8.45am this morning in Hanoi, gold price at Saigon Jewelry Co (SJC), Vietnam’s biggest gold trader, was a little lower than VND100,000 a tael compared to yesterday, falling to around VND41.72 million to VND41.82 million.

Hanoi-based Bao Tin Minh Chau Jewelry Company purchased SJC brand gold at VND41.72 million, and sold at VND41.82 million as of 10am Vietnamese time.

In Ho Chi Minh City, SJC bought gold at VND41.65 million, and sold at VND41.8 million as of 9.55am Vietnamese time.

Although it slid by VND100,000, it is still some VND1,700,000 a tael higher than world gold price; while yesterday’s gap was VND1,300,000.

On free market, dollars were bought at VND20,900 and sold at VND20,920, unchanged as of last weekend.

Vietcombank bought the greenback at VND20,860, and sold at VND20,910.

Eximbank traded dollars at VND20.860 and VND20.900 for selling and buying at 10am Vietnamese time.

In the global market, after the U.S. Labor Department on July 6 announced payroll rise by 80,000, less than the 100,000 increase forecast, and the unemployment rate held at 8.2 percent, investors were seen selling off at reduced prices due to concerns about a slowing economy, causing a decline in price of the precious metal.

Gold still reacts as a risk asset which declines on bad news and climbs on good news.

August-delivery bullion fell by $30.5 at closing session, standing at $1,578.90 an ounce on the Comex in New York.

Oil for August delivery fell $2.77, or 3.2 percent, to settle at $84.45 a barrel on the New York Mercantile Exchange. Crude, which fell 0.6 percent this week, is down 15 percent this year. The weekly decline was the eighth in 10 weeks.

Brent oil for August declined $2.51, or 2.5 percent, to settle at $98.19 a barrel on the London-based ICE Futures Europe Exchange. 

Oil consumption in the U.S., the world’s largest user, will drop for a second year in 2012, the Energy Department said last month in its Short-Term Energy Outlook. Demand in Europe will also decline both this year and the next, the department said.

By Anh Quan

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