Gold and dollar march south

The price of gold in Vietnam dropped below VND38 million a tael (1.2 ounces) on June 9 as global price continuously retreated due to profit-taking.

Sacombank Jewelry Company bought the metal at VND37.81 million and sold at VND37.87 million as of 11 am local time.

Saigon Jewelry Company, the biggest gold shop in Vietnam, purchased gold at VND37.83 million and sold at VND37.89 million.

Meanwhile, the Hanoi-based Phu Quy Jewelry bought SJC-brand gold at VND37.8 million and sold at VND37.86 million at the same time.

Gold lost by VND50,000 a tael over the previous day, standing at the lowest level in the past 5 days.

Domestically, gold fetched around VND350,000 a tael lower than global price.

The dollar exchange rate against the Vietnamese dong at commercial banks sharply dropped this morning. State-owned Vietcombank bought the greenback at VND20,520 and sell at VND20,620, a decrease of VND30 per dollar in buying price and VND80 per dollar in selling price over the previous day.

Meanwhile, the interbank US dollar exchange rate continued to stay at a record low of VND20,623.

Internationally, gold declined as a three day of gains prompted investors to sell the precious metal to book profits. The market is waiting for following US economic news, as well as next movements of the US Federal Reserve to determine the direction of the precious metal.

Fed is going to end the quantitative easing package at the end of this month. However, for recent negative economic data, investors expect that it will issue a new policy to stimulate growth.

Gold for immediate delivery fell as much as $7.1 an ounce over the previous trading session to settle at $1,538.6 an ounce on the Comex in New York.

In Asia, the precious metal continued going down this morning. Spot gold edged down $1.6 an ounce over the closing price in New York to trade at $1,537 an ounce as of 10:50 am Vietnamese time.

The euro exchange rate against the US dollar stood above $1.46 a euro in Tokyo this morning.

Crude oil futures for July settlement rose as much as $1.65 a barrel to close at $100.74 a barrel on the New York Mercantile.

This morning, crude oil rallied $0.55 a barrel to $101.29 a barrel as of 11 am Vietnamese time. Crude oil rebounded as OPEC failed to meet an agreement on crude production with six members opposing Saudi Arabian push to increase output.

By Sao Khue

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