Gold fluctuates again

Affected by losing momentum in global price, the price of gold in Vietnam slid by VND70,000 a tael (1.2 ounces) before rebounding again on July 2 while the US dollar stood above VND20,900 per dollar.

Saigon Jewelry Company, the biggest gold shop in Vietnam, bought gold at VND41.77 million, and sold at VND41.92 million at 9.55am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND41.82 million, and sold at VND41.94 million at 10am Vietnamese time.

Bao Tin Minh Chau quoted the rate at VND40.25 million for buying, and VND40.55 million for selling.

Domestically, gold fetched VND1.8 million, higher than global price.

Gold gained around VND500,000 million in June, but fell VND2 million in the second quarter of this year, and lowered by VND1.5 million compared to the beginning of the year.

On free market in Hanoi, dollars were bought at VND20,900, and sold at VND20,920, unchanged as of last weekend.

Vietcombank bought the greenback at VND20,850, and sold at VND20,910, a decrease of VND15 per dollar in selling price over last Friday. Eximbank also traded dollars at the same rate at 10am Vietnamese time.

Internationally, gold dropped at the trading session in Asia this morning due to profit-taking and disappointing economic news from China and Japan.

Gold for immediate delivery traded at $1,592.9 an ounce, down $7.5 an ounce at 10am Vietnamese time.

Last Friday, the heavy metal jumped by nearly $50 an ounce, the strongest pace in a month, after European leaders reached an agreement to support ailing banks in the eurozone, at the European summit meeting.

Data showed manufacturing activity in China and Japan, the world's second and third largest economies, fell to seven-month low in June, fueling worries that the global economy is deteriorating.

Gold still reacts as a risk asset which declines on bad news and climbs on good news.

Euro exchange rate against the US dollar was at $1.26 a Euro from nearly $1.27 a Euro last weekend.

Crude oil futures for August delivery lost $0.96 a barrel, or 1.1 percent, to trade at $84 a barrel at 10am Vietnamese time.

By Thuy Doan

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