Gold continues downward journey

Gold prices in Vietnam fell by VND200,000 a tael (1.2 ounces) to around VND20.78-20.85 million on July 8. Trading remained thin as investors expected gold prices to drop further.

Globally, gold prices dropped slightly to US$925.1 an ounce from the previous day, a decrease of $0.8 an ounce.

In Hanoi, Phu Quy Jewelry sold gold at VND20.86 million and bought at VND20.82 million.

Sacombank Jewelry traded gold at VND20.87 million a tael.

Phu Nhuan Jewelry sold at VND20.85 million and bought at VND20.81 million.

The Hanoi-based dealer, Bao Tin Minh Chau, fixed prices at VND20.87 million for selling and VND20.81 million for buying.

Trading volume at the gold shops was muted, as gold is expected to have more corrections in the coming days.

On the SBJ trading floor, more than 234,000 taels changed hands at between VND19.79 million and VND19.99 million.

Global gold prices dipped to their lowest level in the last two weeks, as investors doubted the prospect of the economy’ recovery.

Bloomberg quoted comments by some analysts that the price of the precious metal may plunge below $900 an ounce if it falls below the threshold of $915 an ounce.

In Asia, the price of gold for spot delivery slumped to $923.8 an ounce, $1.3 an ounce lower than the New York closing price.

The strong dollar has created pressure on the precious metal but has not been strong enough to push gold prices down further.

Investors are paying attention to the G-8 meeting and its outcome, which opened on July 8 in Italy.

Crude oil sank to its lowest level in the last six weeks at $62 a barrel since a report, by the American Petroleum Institute, last week said that the country’s crude oil reserves dropped to 348.3 million barrels while gasoline reserve surged by 767,000 barrels to 212.4 million barrels.

Ending the trading session in New York, the price of crude oil for August delivery was at $62.93 a barrel, down $1.12.

In London, the price of Brent crude oil fell to $62.40 a barrel.

The State Bank of Vietnam fixed the dollar exchange rate at VND16,957. State-owned Vietcombank bought and sold the greenback at VND17,805.

Compiled by Thuy Doan

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