Gold hovers around VND35.7 million

The price of gold in Vietnam hovered around VND35.7 million a tael (1.2 ounces) on November 23 as global prices stalled.

Most gold shops bought the metal at VND35.6 million and sold at VND35.7 million as of 9:30 am local time.

Sacombank Jewelry bought gold at VND35.66 million and sold at VND35.72 million.

Saigon Jewelry Co., the biggest gold shop in Vietnam, purchased the metal at VND35.62 million and sold at VND35.69 million.

Meanwhile, SJC-brand gold was bought at VND35.65 million and sold at VND35.75 million at Hanoi-based Phu Quy Jewelry.

Domestically, gold remained fetching around VND1 million a tael higher than global prices.

Gold maintained above VND35 million a tael for a few days. However, experts from Sacombank Jewelry Company said it was reasonable to buy gold for long term investment at a price of VND34 million a tael.

On free market, the US dollar exchange rate almost unchanged as of the previous day, Dollars were bought at VND21,150 and sold at VND21,200.

Globally, despite the euro’s debasement against the US dollar, gold advanced as investors increased demand for the metal as a hedge to protect their wealth.

Gold for immediate delivery rose as much as $12.3 an ounce, or 0.9 percent, to close at $1,367.4 an ounce on the Comex in New York.

After Ireland reached an agreement about a bailout package with the European Union and the International Monetary Fund, Moody’s Investors Service warned that it might downgrade Ireland’s credit rating.

Concerns over the European debt crisis had not been eased as a rescue package, estimated around $130 billion, failed to damp speculation that Portugal and Spain would follow Ireland in tapping the fund set by the EU and IMF after the Greece bailout.

The euro exchange rate against the greenback was at $1.36 a euro in Tokyo this morning from $1.37 the previous day.

Meanwhile, concerns that China might tighten its monetary policies to curb inflation prevented the yellow metal to advance further. In Asia, spot gold dropped to $1,363 an ounce, down nearly $5 an ounce over the closing price in New York, as of 10:10 am Vietnamese time.

Holdings at SPDR Gold Trust, the largest exchange traded fund backed by bullion, reduced by 4.2 metric tons yesterday to 1,385.1 metric tons.

Crude oil futures for January settlement slipped $0.24 a barrel, or 0.3 percent, to close at $81.74 a barrel on the New York Mercantile Exchange.

This morning, crude oil continued to fall to around $81.5 a barrel.

By Thuy Doan

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