Gold drops to near VND42 million

Price of gold in Vietnam retreated to near VND42 million a tael (1.2 ounces) on December 29 as global price tumbled 2.3 percent at the trading session in New York last night after lingering concerns over the European sovereign-debt crisis causing the euro to devalue.

Sacombank Jewelry Company bought gold at VND41.7 million and sold at VND42.1 million as of 10:30am Vietnamese time.

Saigon Jewelry Company, the biggest gold processing and trading company in Vietnam, collected gold at VND41.65 million and sold at VND42.05 million as of 11:18am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND41.87 million and sold at VND42.13 million at 10:20am Vietnamese time.

Meanwhile, Bao Tin Minh Chau Jewelry Company quoted the price at VND41.05 million for buying, and VND41.32 million for selling at 12:10pm Vietnamese time.

Domestically, SJC-brand gold fetched VND2.4 million a tael, higher than global price.

Yesterday, a slump in gold price urged many people to sell gold to avert losses, whereas other people considered the prices were attractive enough to buy in. Nevertheless, jewelers said trading had not significantly improved as expected. Sacombank Jewelry Company said they traded around 700 taels of gold yesterday, of which buy-in accounted to 64 percent of the total volume.

The interbank exchange rate remained at VND20,828 per dollar. The ceiling price at commercial banks was at VND21,030 for buying, and VND21,036 for selling.

Internationally, gold declined as a stronger US dollar curbed demand for the precious metal as an alternative asset.

Gold for immediate delivery fell as much as $36 an ounce, or 2.3 percent, to close at $1,557.3 an ounce on the Comex in New York.

In Asia, gold maintained losing momentum in the trading session this morning. Spot gold was traded at $1,556 an ounce at 11:45am Vietnamese time.

The euro exchange rate against the US dollar dropped to below $1.3 a euro, the lowest level since the beginning of this year, as investors were still nervous about the debt crisis in Europe.

By Thuy Doan

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