Gold drops VND200,000 per tael

Despite a drop of 1.9 per cent in global gold price in New York last night, price of gold in Vietnam only retreated by nearly VND200,000 per tael (1.2 ounces) over the previous day on March 7, widening the gap between global and local prices.

Sacombank Jewellery Company bought gold at VND44.27 million and sold at VND44.47 million as of 9.10am Vietnamese time.

Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, collected the metal at VND44.25 million and sold at VND44.45 million as of 11am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND44.34 million and sold at VND44.44 million as of 11.03am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND43 million for buying, and at VND43.3 million for selling at 11.15am Vietnamese time.

Domestically, gold fetched around VND2.4 million a tael, higher than global price.

According to gold traders, yesterday investors increased selling of gold on fears that prices would decline further after the metal continually dropped the previous day. However, selling momentum remained limited and buying demand was weak due to a wide gap between global and domestic prices.

Meanwhile, the dollar exchange rate was somewhat steady on both black market and at commercial banks. The greenback was still bought at VND20,800 per dollar, and sold at VND20,820 per dollar, on free market. Vietcombank bought dollar at VND20,800 per dollar, and sold at VND20,860 per dollar.

Internationally, gold tumbled along with equities and other essential commodities as renewed concerns over a possible debt default in Greece strengthened the US dollar, curbing demand for the precious metal.

Greek leaders once again caused creditors and international investors to panic after Athens announced that it wanted to seek an agreement on bond swap deal to reduce its debt. While big private creditors warned that a Greek disorderly default might cause a loss of more than 1 trillion euro to the eurozone.

Gold for immediate delivery fell as much as $31.8 an ounce, or 1.9 per cent, to close at $1,675.6 an ounce on the Comex in New York. Earlier, the metal plunged to $1,661.9 an ounce, the lowest level in the past six weeks.

In Asia, the metal slid at the beginning of the trading session, but recovered later. Spot gold was traded at $1,677.5 an ounce, up $1.9 an ounce, at 9am Vietnamese time.

The euro exchange rate against the US dollar traded above $1.31 a euro in Tokyo this morning from above $1.32 a euro the previous day.

By Thuy Doan

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