Gold falls below $915, dollar up, oil down

Domestic gold prices sank to their lowest level in the last two months at VND20.7 million a tael (1.2 ounces), fetching VND1.2 million more than the global price on July 9.

Global gold prices dropped sharply by US$15 an ounce to settle at $910.1 as the dollar climbed.

Agribank Jewelry sold gold at VND20.74 million ($1165) and bought at VND20.57 million, while Sacombank Jewelry sold at VND20.73 million and bought at VND20.63 million.

Phu Nhuan Jewelry said gold was on sale at VND20.72 million, a slump of VND130,000 a tael, and bought at VND20.68 million.

Saigon Jewelry, the biggest gold shop in Vietnam, traded gold at VND20.78 million a tael.

Trading volume at gold shops has not improved, as investors were wary of the psychological level of $915 had been broken.

On SBJ trading floor, matching prices were around VND19.53 to 19.81 million a tael with nearly 208,000 taels successfully traded. The floor’s commission rose to VND1.25 million a tael.

In New York, the price of the precious metal for August delivery plunged to $909.3 an ounce, a drop of $19.8 an ounce. Earlier, the metal touched $904.80, the lowest for a most-active contract since May 6.

In Asia, gold price for spot delivery slightly recovered at $912.2 an ounce, $2 higher than New York’s closing price.

“The dollar’s recent stability, coupled with an impressive crude-oil decline in the past several days, has gold bulls on the defensive,” said Ralph Preston, a Heritage West Futures commodity analyst in San Diego.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust said holdings stood at 1,109.81 tons after it sold 10.38 tons yesterday.

The greenback remained stable as G8 leaders said the economic recovery from the steepest recession since World War II was too fragile for them to consider reversing efforts to pump money into the economy.

The U.S. Dollar Index, a six-currency gauge of the greenback’s value, advanced as much as 0.3 percent after the International Monetary Fund raised its 2010 forecast for global economic growth.

Crude oil continued sliding for a sixth session, the longest slide this year.

In New York, crude oil futures for August delivery declined by $2.79 a barrel, 4.5 percent, to $60.14 a barrel.

In London, Brent crude oil closed at $60.43 a barrel, down $2.8, 4.4 percent.

Compiled by Thuy Doan

Other news