Gold in downswing

Price of gold in Vietnam declined after rising by nearly VND200,000 a tael (1.2 ounces) on May 31 while international investors stood on the sideline to await US unemployment report in May.

Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, bought the metal at VND41.18 million and sold at VND41.38 million as of 9.15am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND41.28 million and sold at VND41.39 million as of 11.15am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND40.1 million for buying, and at VND40.4 million for selling at 12.15pm Vietnamese time.

Domestically, gold fetched VND2.1 million a tael, higher than global price.

On free market, dollars were bought at VND20,870 per dollar, and sold at VND20,890 per dollar, up VND10 per dollar over the previous day.

Meanwhile, Vietcombank bought the greenback at VND20,840 per dollar, and sold at VND20,890 per dollar, unchanged as of the previous day. 

Internationally, gold rebounded at the trading session in New York last night as low prices prompted investors to buy gold. However, concerns on the European sovereign-debt turmoil, especially Spain’s struggle with its finances and frail banking sector, continued to weigh on the shared currency and bullion.

Borrowing costs of Spain and Italy’s government bonds escalated strongly yesterday while that of the US dropped to the lowest level in the past 60 years, prompting anxious investors to dumped the Euro for the greenback and US treasury bonds to protect their portfolios.

Gold for immediately delivery rose as much as $7.7 an ounce, or 0.5 per cent, to close at $1,563.5 an ounce. Earlier, the heavy metal swam upstream from $1,530 an ounce to $1,570 an ounce.

In Asia, the metal inched up then resumed losing trend at the trading session this morning. Spot gold lost $1.3 an ounce to trade at $1,562.2 an ounce at 10.30am Vietnamese time.

Investors eye the US payrolls data in May which will be released tomorrow by the US Labour Department. The unemployment report will be the footing to determine whether the US Federal Reserve considers more stimulus measures in its monetary policy meeting in June. If the Fed launches another round of quantitative easing package, the precious metal will have a chance to climb sharply.

Euro exchange rate against the US dollar stood at a two-year low of below $1.24 a Euro in Tokyo this morning from $1.25 a Euro yesterday.

Crude oil futures for July delivery fell $0.21 a barrel to trade at $87.61 a barrel at 10.45am Vietnamese time.

By Thuy Doan

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