Gold declines amid low demand

The price of gold in Vietnam on July 1 was VND30,000 a tael (1.2 ounces), slightly cheaper than it was previous day, as global prices barely moved.

In Ho Chi Minh City, Saigon Jewelry Co. bought gold at VND28.52 million and sold it at VND28.57 million, as of 10:30 am local time.

Sacombank Jewelry Co. purchased the metal at VND28.53 million and sold at VND28.57 million.

In Hanoi, SJC-brand gold was bought at VND28.52 million and sold at VND28.59 million at Phu Quy Jewelry Co.

Domestically, the precious metal fetched VND200,000 less than the global price.

Trading on bullion market has been subdued of late. Most investors sold the metal to lock in gains when prices hit the VND28.7 million mark. They stopped selling when the prices fell. Meanwhile, the current prices were considered unreasonable for purchase.

The narrow gap between buying and selling prices was applied to boost trading; however, it was not effective.

Globally, gold fluctuated between US$1,240 and $1,245 an ounce last night in New York’s last trading session of June. The metal increased as much as $1.6 an ounce to close at $1,243.4.

In Asia, gold for immediate delivery fell to around $1,240-$1,242 this morning.

Gold posted the best quarterly gain since the final quarter of 2007. This period, the metal has jumped 12 percent, hitting an all-time high of $1,265.3 on June 21. It advanced due to concerns that Greece’s debt crisis was likely to spread, leading to further debasement of the European shared currency and a generally delicate outlook on the prospects of the global economy’s ability to recover fully.

According to international analysts, fear factors will bolster the metal in short run, but added that gold would probably move in a relatively tight range before too long.

The Indian Bullion Market Association said imports of the world’s largest gold importer may fall by more than a third this year.

Crude oil extended its losing streak to four consecutive days, trading below $75 a barrel this morning.

The dollar exchange rate against the euro was nearly unchanged as of yesterday, standing above $1.22.

At most commercial banks, the dollar exchange rate again Vietnamese dong made a correction after rocket rises for two days, dropping to VND19,040 per dollar for buying and VND19,095 for selling.

On free market, the greenback was traded at VND19,100.

By Thuy Doan

Other news