Gold hovers around VND42.45 million

Price of gold in Vietnam declined by VND150,000 per tael (1.2 ounces) over last weekend on May 7 as global price made correction after elections in France and Greece cast doubts on whether the eurozone would be able to ease the debt crisis.

Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, bought the metal at VND42.26 million and sold at VND42.46 million as of 10.25am Vietnamese time.

Sacombank Jewellery Company collected gold at VND42.39 million and sold at VND42.47 million at 11am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND42.39 million and sold at VND42.49 million as of 8.46am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND41.85 million for buying, and VND42.15 million for selling at 12pm Vietnamese time.

Domestically, gold fetched VND1.3 million a tael, higher than global price.

On free market, dollars were bought at VND20,830 per dollar, and sold at VND20,850 per dollar, unchanged as of last weekend.

Vietcombank cut its rate by VND10 per dollar over last Friday to buy the greenback at VND20,820 per dollar, and sell at VND20,870 per dollar.

Internationally, gold sank as the US dollar strengthened after Francois Hollande ousted Nicholas Sarkozy in the French presidential elections on Sunday and Greece's pro-bailout ruling party suffered huge losses, fueling concerns on whether the eurozone would be able to push through the austerity measures to fight back the debt crisis.

Gold for immediate delivery fell as much as $3.2 an ounce to close at $1,639.9 an ounce at 10.30am Vietnamese time.

However, gold's decline was limited even as the dollar index jumped to a three-week high in reaction to the election results, as some investors see bullion as a safe-haven during political and economic uncertainty.

Meanwhile, SPDR Gold Trust sold nearly 10.3 metric tonnes of gold, reducing its holdings to 1,274.1 metric tonnes, the lowest level in the past three months.

The euro exchange rate against the US dollar was below $1.3 a euro in Tokyo this morning.

By Thuy Doan

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