Gold recovers after sharp drop

After plunging to VND45.5 million at the beginning of the day, the price of gold in Vietnam recovered to nearly VND46 million a tael (1.2 ounces) on November 18 as rising bottom fishing demand following a drop of 2.4 percent in the trading session in New York last night shored up global price in Asia this morning.

Sacombank Jewelry Company bought gold at VND45.75 million and sold at VND45.9 million as of 9:15 am Vietnamese time.

Saigon Jewelry Company, the biggest gold processor and trader in Vietnam, collected gold at VND45.67 million and sold at VND45.87 million as of 10:44 am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND45.63 million and sold at VND45.85 million as of 12:22 pm Vietnamese time.

Domestically, gold fetched around VND1.5 million a tael higher than global price.

Domestic gold price was standing at the lowest level in the past week. The heavy metal has lost VND700,000 since the beginning of this week. Trading on bullion market had not significantly improved, although the prices strongly changed.

Internationally, gold sharply dropped in the trading session in New York last night as the Europe’s sovereign-debt crisis worsened, bolstering demand for the US dollar as a safe-haven.

Gold for immediate delivery fell as much as $42.3 an ounce, or 2.4 percent, to close at $1,720.9 an ounce on the Comex in New York. Earlier, the metal sank to below $1,710 an ounce.

In Asia, spot gold was traded at $1,725.2 an ounce, up $3.6 an ounce, at 10:35 am Vietnamese time.

Yesterday, Spain and France’s government borrowing costs climbed to the highest level since 1997, frightening investors, and urging them to dump risky assets heavily. Bad news from Europe dimmed the US positive data on jobless claims which dropped to 388,000, the lowest level since the beginning of April.

Holdings at SPDR Gold Trust, the largest exchange traded fund backed by bullion, increased by more than 12 metric tons to 1,289.5 metric tons.

The euro exchange rate against the US dollar remained at $1.35 a euro in Tokyo this morning.

By Thuy Doan

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