Gold, black-market dollar drop

The price of gold in Vietnam sank by VND500,000 per tael (1.2 ounces) over last weekend on October 31 as global price sharply retreated due to a stronger US dollar.

Sacombank Jewelry Company and Saigon Jewelry Company, the biggest gold shop in Vietnam, bought gold at VND44.5 million and sold at VND44.8 million as of 11:45 am local time.

Hanoi-based Phu Quy Jewlery Company purchased SJC-brand gold at VND44.45 million and sold at VND44.85 million as of 12 pm local time.

Domestically, gold fetched VND950,000 a tael higher than global price.

The interbank exchange rate stood at VND20,803 per dollar for three straight days. Vietcombank bought dollars at VND21,006, and sold at VND21,011. On black market, the greenback was purchased at VND21,300, and sold at VND21,400, a decrease of VND100 over last weekend.

Internationally, gold declined as the US dollar strengthened, sapping demand for the heavy metal as an alternative asset.

In Asia, gold for immediate delivery lost more than $30 an ounce over the closing price in New York to trade at $1,713.7 an ounce at 11:45 am Vietnamese time.

This month, the yellow metal has gained more than 5 percent after declining nearly 11 percent in September.

The greenback rose more than 1 percent against a basket of six major currencies after Japan intervened in currency market to weaken the yen.

The euro exchange rate against the US dollar was above $1.4 a euro in Tokyo at 12 pm Vietnamese time. Last weekend, the rate was at $1.41 a euro.

Crude oil futures slid $0.48 a barrel to trade at $93.49 a barrel on the New York Mercantile Exchange at the same time.

By Thuy Doan

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