The price of gold in Vietnam fell to a three-week low on December 12 as global prices declined, capping the biggest weekly drop since February.
At Saigon Jewelry, the largest gold shop in Vietnam, the metal was bought at VND26.75 million and sold at VND26.9 million, a decrease of VND400,000-450,000 a tael over the previous day.
Domestic gold prices have lost by VND1-1.2 million this week. Since the latest hit to the VND29 million mark on November 26, the main trend on the bullion market was downwards.
Trading volume was low with a few small investors buying gold while others remained cautious and waited for the price to plunge further.
Globally, gold dropped to a four-week low as US retail sales last month were better than estimated and consumer confidence data boosted optimism that the economic recovery was strengthening, enhancing the greenback’s value.
Spot gold slid as much as US$14 an ounce to close at $1,115.1 an ounce. Bullion declined $49.40 an ounce, or 4.23 percent, capping the biggest weekly loss since February.
Gold futures for February delivery fell $6.30, or 0.6 percent, to $1,119.90 an ounce in New York.
The euro exchange rate against the dollar closed the week at the lowest level within the last two months as optimism that the US Federal Reserve would soon raise the benchmark rate bolstered the currency strength.
The State Bank of Vietnam fixed the dollar exchange rate at VND17,941. Commercial banks bought dollar at VND18,469 and sold at VND18,479.
Firms and economic organizations finally sold dollars to banks after the State Bank extended the exchange range to 5 percent and raised the exchange rate at commercial banks to more than VND1,000 a dollar.