Gold and dollar decline

The price of gold in Vietnam retreated to near VND44 million a tael (1.2 ounces) on October 6 despite the fact that global price strongly recovered after sinking to $1,600 an ounce.

Sacombank Jewelry Company bought gold at VND43.71 million and sold at VND44.14 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 VND44.15 million for selling in Ho Chi Minh City.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND43.95 million and sold at VND44.35 million at the same time.

Domestically, gold fetched VND2.75 million a tael higher than global price.

A drop in global price sent domestic gold price down at the beginning of this morning. However, although global price started to recover since the middle of this morning, the price of gold in Vietnam continued to decline as the US dollar exchange rate steeply slumped on free market.

Dollars were bought at VND21,400, and sold at VND21,500, a decrease of VND130 per dollar over the previous day, at 10:45 am local time on free market in Hanoi.

Meanwhile, the interbank exchange rate continued climbing by VND10 per dollar to VND20,648. Vietcombank bought the greenback at VND20,850 per dollar, and sold at VND20,854 per dollar.

International, gold fluctuated on concern that the European sovereign-debt crisis will hinder the global economy.

Gold for immediate delivery rose as much as 1.1 percent to close at $1,643.6 an ounce on the Comex in New York. Earlier, the metal plunged to $1,607 an ounce.

Spot gold was traded at $1,646.7 an ounce at 11 am Vietnamese time, up $3.1 an ounce over the closing price in New York. The heavy metal receded to $1,636 an ounce an hour earlier.

The euro exchange rate against the US dollar was at $1.33 in Tokyo at 11:22 am Vietnamese time.

Crude oil futures lost $0.18 a barrel to trade at $79.5 a barrel on the New York Mercantile Exchange at the same time.

By Thuy Doan

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