Gold makes sharp jump

Price of gold in Vietnam surged to VND41.6 million a tael (1.2 ounces) on May 18 as global price unexpectedly jumped by more than 2 per cent from a ten-month low at the trading session in New York last night.

Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, bought the metal at VND41.43 million and sold at VND41.63 million as of 11.05am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND41.52 million and sold at VND41.65 million as of 10.33am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND40.7 million for buying, and at VND41 million for selling at 10.30am Vietnamese time.

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

Buying was recorded as the upper hand on bullion market. However, local bullion market was not actually vibrant with mostly small investors.

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

Meanwhile, Vietcombank still bought the greenback at VND20,820 per dollar, and sold at VND20,870 per dollar. 

Internationally, gold rebounded sharply from the lowest level since late July last year as a weaker US dollar and a ten-month low spurred demand for the precious metal.

Gold for immediately delivery rose as much as $34 an ounce to close at $1,575.3 an ounce in New York, the strongest pace since January this year. The metal was supported by a decline in regional US factory activity that fueled hopes for more monetary stimulus.

However, gold was heading for third week of decline as mounting concerns over the eurozone sovereign debt crisis prompted investors to barter risk assets including gold. While Greece was facing risk of exiting the eurozone due to the country’s political deadlock, credit ratings of several Spanish banks were downgraded by Moody’s Investors Service.

In Asia, spot gold gained $1.8 an ounce to trade at $1,577.1 an ounce at 9.30am Vietnamese time.

Euro exchange rate against the US dollar was at below $1.27 a Euro in Tokyo this morning.

Crude oil futures for June delivery dipped $0.01 a barrel to trade at $92.55 a barrel at 9.40am Vietnamese time.

By Thuy Doan

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