Gold declines below VND43 million

Price of gold in Vietnam retreated below VND43 million a tael (1.2 ounces) on May 2 as global price failed to maintain rising trend after climbing for five consecutive trading sessions.

Sacombank Jewellery Company bought gold at VND42.9 million and sold at VND43.04 million as of 8.20am Vietnamese time.

Saigon Jewellery Company, Vietnam’s biggest gold processor and trader collected the metal at VND42.74 million and sold at VND42.94 million as of 10.25am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND42.86 million and sold at VND42.96 million as of 10.36am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND42.25 million for buying, and at VND42.55 million for selling at 11.20am Vietnamese time.

Domestically, gold fetched around VND1.3 million a tael, higher than global price.

According to gold traders, after a long holiday, bullion market had a sluggish start this morning with the number of customers dropping drastically.

On free market, dollars were bought at VND20,840 per dollar, and sold at VND20,860 per dollar, down VND10 per dollar from the previous day.

Meanwhile, Vietcombank bought the greenback at VND20,840 per dollar, and sold at VND20,900 per dollar, an increase of VND10 per dollar in buying price over last weekend.

Internationally, gold snapped its five-day winning streak after the Institute for Supply Management said that US manufacturing grew in April at the fastest pace in 10 months, easing concerns that the economy had lost momentum at the start of second quarter.

Gold for immediate delivery fell as much as $2.1 an ounce to close at $1,663.2 an ounce in New York last night. Earlier, the heavy metal jumped to $1,672.8 an ounce, the highest level in the past two weeks.

Holdings at SPDR Gold Trust, the largest exchange traded fund backed by bullion, dropped by more than 0.3 per cent to 1,274.1 metric tonnes. This is the lowest level in the past three months.

In Asia, the metal continued to edge down at the trading session this morning. Spot gold lost $3.5 an ounce to trade at $1,659.7 an ounce at 10.05am Vietnamese time.

The US Dollar Index, which tracks the greenback’s strength against a basket of six major currencies, escaped from a ten-week low thanks to upbeat economic data. The euro exchange rate against the US dollar was at $1.32 a euro in Tokyo this morning.

Crude oil futures for June delivery fell $0.29 a barrel to trade at $105.87 a barrel at 10.20am Vietnamese time.

By Thuy Doan

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