Gold moves around VND37.5 million

The price of gold in Vietnam stalled around VND37.5 million a tael (1.2 ounces) on May 23 as global price slid this morning after sharply jumping last Friday.

Sacombank Jewelry Company bought the metal at VND37.41 million and sold at VND37.49 million as of 9:15 am local time.

Meanwhile, Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND37.41 million and sold at VND37.51 million at the same time.

Domestically, gold fetched around VND350,000 a tael lower than global price.

A rise of 1.3 percent in global price last Friday barely affected domestic gold price. Low demand and a stable US dollar exchange rate against the Vietnamese dong caused local gold price to be out of tune with global price.

Currently, gold was not an attractive investment channel to most investors. Meanwhile, high Vietnamese dong savings rate and measures which tightened bullion trading withdrew a large amount of investment from bullion market. However, the metal struggled to gain VND1.3 million per tael over the beginning of this year.

Internationally, gold declined as investors sold the metal to take profits of previous gains.
Gold for immediate delivery fell by $4.4 an ounce over the closing price in New York to trade at $1,510.1 an ounce as of 9:45 am Vietnamese time in Asia this morning. Earlier, the metal surged to $1,518 an ounce, the highest level in the past two weeks.

At this moment, gold remained supported by many factors.

Rising inflation in China urged people to buy the precious metal as a hedge against inflation.

The European sovereign-debt turmoil is getting worse. Fitch Ratings lowered Greece’s debt rating for three levels, while Standard & Poor’s warned that it might cut debt rating of Italy.

The euro exchange rate against the US dollar dropped to $1.4 a euro this morning.

Crude oil futures for July settlement also bent down, trading just above $99 a barrel.

The greenback exchange rate against the Vietnamese dong quoted at commercial banks went down this morning. Meanwhile, the interbank exchange rate was stable at VND20,673 per dollar.

State-owned Vietcombank bought dollars at VND20,670 and sold at VND20,770, a decrease of VND30 per dollar.

By Quy Doan

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