Domestic gold price continues to outpace global price

The price of gold in Vietnam was pinned around VND47.5 million a tael (1.2 ounces) on September 12 as global price continued to decline over last weekend.

Saigon Jewelry Company, the biggest gold shop in Vietnam, bought gold at VND47.35 million and sold at VND47.55 million at 10 am local time in Ho Chi Minh City. In Hanoi, the metal was bought at the same price but sold VND20,000 a tael higher.

Sacombank Jewelry Company collected gold at VND47.31 million and sold at VND47.54 million at 11:25 am local time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND47.33 million and sold at VND47.57 million at the same time.

Domestically, gold fetched around VND1.1 million a tael higher than global price.

On foreign currency market, the dollar exchange rate on free market changed a little over last weekend. The greenback was bought at VND20,870, and sold at VND20,920.

On global market, gold fell as investors sold gold to take profits and a stronger US dollar eroded the appeal of the precious metal as an alternative asset.

Gold for immediate delivery lost as much as $11 an ounce to close week at $1,859.6 an ounce on the Comex in New York last Friday.

Last week, the metal sank 1.4 percent, the biggest weekly decline since June 26.

In Asia, the metal dropped in the trading session this morning as the US dollar strengthened. Spot gold edged down $10.8 an ounce over the closing price in New York to trade at $1,850 an ounce at 11:25 am Vietnamese time.

The euro exchange rate against the greenback was at $1.36 in Tokyo this morning, the lowest level in the past six months.

Holdings at SPDR Gold Trust, the largest exchange traded fund backed by bullion, increased by 8.7 metric tons to 1,241.9 metric tons last Friday.

Crude oil futures for October delivery plunged $1.09 a barrel, or 1.3 percent, to trade at $86.15 a barrel on the New York Mercantile Exchange at 11:25 am Vietnamese time.

By Thuy Doan

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