Depreciation pressure stalks bullion price

Price of gold in Vietnam and global prices both declined slightly on December 12 as investors felt insecure about the European sovereign-debt crisis.

Sacombank Jewelry Company bought gold at VND44.5 million and sold at VND44.75 million as of 10:45am Vietnamese time.

Saigon Jewelry Company, the biggest gold processing and trading company in Vietnam, collected gold at VND44.45 million and sold at VND44.7 million around 11:20am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND44.47 million and sold at VND44.75 million at 11:22am Vietnamese time.

Bao Tin Minh Chau Jewelry Company quoted the price at VND43.6 million for buying, and VND43.9 million for selling at 12:48am Vietnamese time.

According to some jewelers, trading volume on the bullion market continued to go down in recent days. Sacombank Jewelry Company said its trading volume currently fell to below 1,000 taels of gold per day.

Domestically, SJC-brand gold fetched around VND1 million a tael, higher than global price.

On the black market, one dollar was bought at VND21,100, and sold at VND21,140, a decrease of VND20-30 per dollar over last weekend.

The dollar exchange rate was stable for five consecutive weeks on bank market. The interbank exchange rate remained at VND20,803, while commercial banks sold dollars at VND21,011 per dollar.

Internationally, gold slid as European financial leaders failed to draw a convincing plan to completely address the region’s tenacious debt crisis. Europe secured a historic agreement to draft a new treaty for deeper economic integration in the eurozone on Friday, but Britain, the region's third largest economy, refused to join the other 26 countries in a fiscal union and was left isolated.

Gold for immediate delivery fell as much as $2.1 an ounce to close at $1,710.2 an ounce at 9:55am Vietnamese time.

Last week, gold lost 2 percent as European Central Bank dashed expectations for more bond buying.

According to some experts, gold was proving a direct proportion relation to the US stock market. Thus, bullion might advance this week if Wall Street manages to maintain its rising trend. However, Wall Street’s movement will mainly depend on the US major economic statistics on retail sales and inflation rate.

This week, the US Federal Reserve will have a policy meeting on Tuesday, but it is not expected to put forward a new policy this time.

By Thuy Doan

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