Gold continues to lose momentum

Price of gold in Vietnam declined the fifth day, falling to below VND41.9 million a tael (1.2 ounces) on August 3 as global price retreated at the fourth trading session, after markets were disappointed by a lack of firm action from European Central Bank and the US Federal Reserve. 

Saigon Jewelry Company, Vietnam’s biggest gold processer and trader, bought the metal at VND41.75 million and sold at VND41.9 million as of 10.15am Vietnamese time.

Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND41.83 million and sold at VND41.91 million at the same time.

Bao Tin Minh Chau Jewelry Company quoted price at VND40.3 million for buying, and at VND40.6 million for selling at 12.30pm Vietnamese time.

Domestically, gold fetched VND1.9 million a tael higher than global price.

On free market, the US dollar was still bought at VND20,860 per dollar, and sold at VND20,880 per dollar, unchanged over the previous day.

Meanwhile, Vietcombank quoted the rate at VND20,845 per dollar for buying, and at VND20,880 per dollar for selling, unchanged from the previous day.

Eximbank purchased dollars at VND20,820 per dollar, and sold at VND20,880 per dollar.

Internationally, without mentioning any imminent action to contain the regions debt crisis, the European Central Bank disappointed investors, sinking the precious metal for four straight trading sessions.

Last night, gold fell $11.8 an ounce, or 0.7 percent, to close at $1,589.3 an ounce in New York.

In Asia, gold for immediate delivery recovered $2.7 an ounce to trade at $1,592.3 an ounce at 9am Vietnamese time.

The Euro fell to a one-week low against the dollar after the ECB disappointment, especially after hopes for bold actions were raised by ECB chief Mario Draghi's vow last week to do everything possible to preserve the single currency.

Euro exchange rate against the US dollar was below $1.22 a Euro in Tokyo this morning from above $1.22 a Euro the previous day.

Crude oil futures for September delivery gained $0.31 a barrel to trade at $87.44 a barrel at 9am Vietnamese time. Last night, crude oil lost $1.78 a barrel, or 2 percent, to close at $87.13 a barrel.

Today, investors are eyeing the US non-farm payroll data, which is likely to show job growth slightly rising in July, but not enough to dent the unemployment rate of 8.2 percent.

By Thuy Doan

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