Gold plummets; dollar hikes

The price of gold in Vietnam lost VND1 million per tael (1.2 ounces) over the previous day on October 20 as global price dropped after report showed that France and Germany are coming to a standstill in crafting a solution for the region’s crisis.

Sacombank Jewelry Company bought gold at VND42.76 million and sold at VND42.94 million as of 11:10 am local time.

Saigon Jewelry Company, the biggest gold shop in Vietnam, quoted the price at VND42.65 million for buying and VND42.95 million for selling.

Hanoi-based Phu Quy Jewlery Company purchased SJC-brand gold at VND42.8 million and sold at VND43.15 million at the same time.

Bullion was standing at the lowest level since September 26.

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

The interbank exchange rate rose the tenth time in more than a half month to VND20,738 per dollar, up VND5 per dollar, this morning. Vietcombank bought dollars at VND20,940, and sold at VND20,945. On black market, dollars were bought at VND21,520, and sold at VND21,580, an increase of VND60 per dollar in buying price and VND90 per dollar in selling price over the previous day.

Internationally, gold sharply fell as the US dollar became stronger after French President Nicolas Sarkozy said that France and Germany are stuck in how to boost the size of Europe’s rescue fund, curbing demand for the precious metal as a protection of wealth.

Gold for immediate delivery fell as much as $12.4 an ounce, or 0.8 percent, to close at $1,643.7 an ounce on the Comex in New York.

Spot gold was traded at US$1,620 an ounce, down $23.7 an ounce over the closing price in New York, or 1.4 percent, at 10:45 am Vietnamese time.

Crude oil futures fell $0.48 a barrel to trade at $85.63 a barrel on the New York Mercantile Exchange at 11:10 am Vietnamese time.

The euro exchange rate against the US dollar slightly dropped over the previous day, standing at just above $1.37 a euro in Tokyo at the same time.

By Thuy Doan

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