Demand for gold rises as prices fall

Gold prices fell by VND300,000 a tael (37.5 grams) on July 7, attracting heightened buying interest.

Globally, the metal slumped to US$925.9 an ounce from $932.8 the previous day.

Sacombank Jewelry Company sold gold at VND20.92 million a tael and bought it at VND20.84 million.

In Ho Chi Minh City, Phu Nhuan Jewelry Company fixed its selling price at VND20.85 million.

Saigon Jewelry Co. bought at VND20.80 million and sold at VND20.90 million.

Investors said a series of corrections has boosted demand for the precious metal but trading remains thin since sellers are keeping away.

PNJ said it bought nearly 1,000 taels and sold more than 500 taels but mostly in trading with other gold shops.

Vietnamese bullion prices are more than VND1 million higher than global prices.

On the SBJ trading floor, the price dipped below the VND20 million mark, going down to VND19.78-19.87 million.

Trading volumes on exchanges were fairly high, with more than 320,000 taels changing hands.

Globally, prices remain in a narrow range and have not shown any clear direction.

In Asia, the price of gold for spot delivery slid by $1 from the New York closing price to $924.9 an ounce, the lowest level in the last fortnight.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, continued to sell gold. The fund’s website said it has sold 0.36 tons, bringing its gold reserve down to 1,120.19 tons.

Meanwhile, crude oil retreated to $64 a barrel as the US dollar strengthened, the lowest price since May 27.

The State Bank of Vietnam fixed the dollar exchange rate at VND16,956. State-owned Vietcombank bought and sold the greenback at VND17,804.

Compiled by Thuy Doan

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