Gold clings to VND42 million

Price of gold in Vietnam struggled to hold onto VND42 million a tael (1.2 ounces) on June 11, while black market US dollar maintained at VND21,000 per dollar.

Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, bought the metal at VND41.8 million and sold at VND42 million as of 11am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND41.93 million and sold at VND42.05 million as of 12.40pm Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND40.7 million for buying, and at VND41 million for selling at 12.50pm Vietnamese time.

Domestically, gold fetched VND1.6 million a tael, higher than global price.

On free market, the US dollar was bought at VND20,980 per dollar, and sold at VND21,000 per dollar, unchanged from last weekend.

At commercial banks, the dollar exchange rate also stalled after chasing wildly last week. Vietcombank bought the greenback at VND20,960 per dollar, and sold at VND21,036 per dollar.

Internationally, gold edged up but failed to hit US$1,600 an ounce again. The heavy metal rose in tandem with the Euro and other risky assets after eurozone policymakers agreed a 100 billion Euro loan ($125 billion) for Spain to support its battered banks at a meeting last weekend.

In Asia, spot gold gained $1.5 an ounce to trade at $1,597.2 an ounce at 11am Vietnamese time.

However, gold could not rise strongly as investors concerned that the European sovereign-debt crisis was worse than what they have known so far. Since the end of last year, the debt crisis in Europe continuously caused depreciation pressure on the Euro and bullion, prompting investors to seek the greenback as safe-haven.

Euro exchange rate against the US dollar rose to above $1.26 a Euro in Tokyo this morning on Spain’s deal.

Crude oil futures for July delivery climbed $1.88 a barrel, or 2.24 per cent, to trade at $86 a barrel at 11am Vietnamese time.

By Thuy Doan

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