Gold drops as central bank allows gold import

The price of gold in Vietnam on November 10 retreated from a record high of VND38.2 million a tael set the previous day after the State Bank of Vietnam announced that it would allow firms to import gold.

Gold was bought at below VND36.5 million and sold at VND36.75 million a tael as of 11:30 am local time, a decrease of VND1.5 million a tael over the record.

Hanoi-based Phu Quy Jewelry Co. bought SJC-brand gold at VND36.5 million and sold at VND36.75 million. Bao Tin Minh Chau fixed the prices at VND36.48 million for buying and VND36.75 million for selling.

In Ho Chi Minh City, Saigon Jewelry Co. bought the metal at VND36.5 million and sold at VND36.62 million. Sacombank Jewelry Co. purchased gold at VND36.48 million and sold at VND36.64 million.

Globally, gold fetched VND500,000 a tael higher than global prices.

Yesterday, gold leaped to VND38.2 million, fetching VND2 million higher than global prices. Investors flocked to gold shops to buy gold, causing more tension on bullion market. The prices dropped as the central bank gave firms permission to import gold. However, the rate moved wildly until the end of the trading session.

On free market in Hanoi, dollars were bought at VND21,000 and sold at VND21,200.

Internationally, gold hit an all-time high for four consecutive trading sessions amid concerns over Ireland’s government debt.

Gold climbed to $1,425.5 an ounce on the Comex in New York. However, the metal unexpectedly plunged due to profit-taking pressure, losing $17.2 an ounce, or 1.2 percent, to close at $1,394 an ounce.

In Asia, the precious metal rebounded this morning. Spot gold was traded at $1,398.6 an ounce as of 9:55 am Vietnamese time.

Holdings at SPDR Gold Trust, the largest exchange traded fund backed by bullion, decreased by 1.3 metric tons to 1,292.9 metric tons yesterday, the company’s website showed.

The US dollar exchange versus the euro recovered to $1.37 a euro in Tokyo this morning from $1.38 the previous day.

Crude oil futures for December delivery slid $0.34 a barrel to $86.72 a barrel on New York Mercantile Exchange.

January-delivery crude oil traded at $86.6 a barrel this morning.

By Thuy Doan

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