Gold nosedives to VND45.5 million

The price of gold in Vietnam slashed VND1.95 million a tael (1.2 ounces) over the the previous day on August 25 as global price plunged on optimistic economic data.

Saigon Jewelry Company (SJC), the biggest gold shop in Vietnam, bought gold at VND45.1 million and sold at VND45.5 million at 2 pm local time in Ho Chi Minh City. In Hanoi, the precious metal was bought at VND45.1 million and sold at VND45.52 million.

Sacombank Jewelry Company collected gold at VND45.21 million and sold at VND45.49 million.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND45.05 million and sold at VND45.6 million at the same time.

On foreign currency market, Vietcombank continued buying the greenback at VND20,830 and selling at VND20,834, unchanged as of the previous day.

Meanwhile, the dollar exchange rate on free market inched up to VND20,980 for buying, and VND21,040 for selling, an increase of VND10 per dollar in selling price.

Internationally, gold plummeted for the third day, capping the biggest drop since March 2008 after CME Group Inc. raised futures margins for a second time this month and speculation that financial markets may be stabilizing, prompting investors to sell the metal after a rally to a record high.

US equities gained after reports on durable-goods orders and home prices beat analyst forecasts. The dollar rose against a basket of six major currencies amid speculation about whether US Federal Reserve Chairman Ben Bernanke will say this week that the central bank is willing to provide more stimulus to the economy.

Gold for immediate delivery fell as much as $77.9 an ounce, or 4.3 percent, to close at $1,752.3 an ounce on the Comex in New York.

Gold futures for December settlement contracted $104 an ounce, or 5.6 percent, to close at $1,757.3 an ounce. This is the worst trading session of a most-active contract since March 19, 2008 when the metal plunged 5.8 percent.

In Asia, the metal recovered to above $1,840 but it soon declined to below $1,750 an ounce this morning.

Spot gold was traded at $1,739.3 an ounce at 2 pm Vietnamese time.

By Kha Lam

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