Gold retreats after hitting two-month high

Price of gold in Vietnam retreated from a two-month high on August 8 as rising momentum in global price stalled.

Saigon Jewelry Company, Vietnam’s biggest gold processer and trader, bought the metal at VND42.12 million and sold at VND42.27 million as of 10.25am Vietnamese time.

Phu Nhuan Jewelry Company purchased gold at VND42.12 million and sold at VND42.22 million at 10.35am Vietnamese time.

Hanoi-based Bao Tin Minh Chau Jewelry Company quoted price at VND40.55 million for buying, and at VND40.85 million for selling at 11.30am Vietnamese time.

Domestically, gold fetched VND1.75 million a tael higher than global price.

Yesterday, gold rose to VND42.34 million a tael, the highest level since the metal hit VND42.7 million in early June.

On free market, the US dollar was bought at VND20,860 per dollar, and sold at VND20,880 per dollar, an increase of VND10 per dollar over the previous day.

Meanwhile, Vietcombank quoted the rate at VND20,840 per dollar for buying, and at VND20,900 per dollar for selling, up VND30 per dollar in selling price from a day earlier.

Eximbank continued to purchase dollars at VND20,820 per dollar, and sell at VND20,880 per dollar.

Internationally, gold continued to climb in tandem with other risk assets at the trading session in New York last night on hopes that the central banks in Europe and the US will launch more stimulus measures to shore up their ailing economies.

Ratings agency Standard & Poor's revised Greece's outlook to negative, saying the debt-ridden eurozone country will need more help from its international creditors.

Meanwhile, German industrial orders fell more than forecast in June and Italy’s economy declined 2.5 percent in the second quarter, sending the country deeper into recession.

President Eric Rosengren of Fed Bank in Boston said the central bank should launch another bond buying program of whatever size and duration is necessary to get the economy back on its feet.

Last night, the heavy metal strengthened $0.7 an ounce to close at $1,613.3 an ounce in New York.

In Asia, the metal made correction at the trading session this morning. Gold for immediate delivery slid $1.5 an ounce to trade at $1,611.8 an ounce at 9.20am Vietnamese time.

Euro exchange rate against the US dollar fell to below $1.24 a Euro in Tokyo this morning.

Crude oil futures for September delivery dropped $0.27 a barrel to trade at $93.4 a barrel at 9.30am Vietnamese time.

By Thuy Doan

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