Gold retreats on stronger dollar

The price of gold in Vietnam fell by VND150,000 a tael (1.2 ounces) over the previous day on November 25 as global prices declined due to a stronger dollar.

Generally, gold was bought at VND35.7 million and sold at VND35.8 million at most gold shops.

Sacombank Jewelry Co. bought gold at VND35.76 million and sold at VND35.89 million.

Saigon Jewelry Co. the biggest gold shop in Vietnam, purchased gold at VND35.72 million and sold at VND35.82 million.

Meanwhile, SJC-brand gold was bought at VND35.75 million and sold at VND35.86 million.

Bao Tin Minh Chau fixed the prices at VND35.74 million for buying and VND35.84 million for selling.

Domestically, gold fetched VND600,000 a tael higher than global prices.

Vietnam’s central bank had allowed gold imports into the country in an attempt to bring prices in line with those on the international gold market.

About 10 gold traders are allowed to import the precious metal from November 24 to the end of this year.

The US dollar exchange rate against the Vietnamese dong resumed gain on black market. Dollars were bought at VND21,200, and sold at VND21,250.

Internationally, bullion dropped as dollar strengthened, curbing the demand for the metal as an alternative asset. In addition, tensions on the Korean peninsula were eased, sapping the appeal of the metal as a safer asset.

Gold for immediate delivery lost US$3.9 an ounceto $1,373.6 an ounce on the Comex in New York.

In Asia, the metal traded around $1,371 an ounce as of 9:30 am Vietnamese time.

The US dollar recovered against a basket of other major currencies as the debt crisis that might spread widely from Ireland to other euro nations, including Spain and Portugal tempted investors to dump the euro for the greenback.

The euro exchange rate fell to $1.33 a euro in Tokyo this morning from $1.34 the previous day.

The US Labor Department announced that initial jobless claims for the week ended November 20 unexpectedly dropped by 34,000 to 407,000, lower than forecast.

Consumer spending, which accounts for 70 percent of the US economy, increased for a fifth month in October as a rebound in incomes spurred purchases at the beginning of the fourth quarter, Commerce Department figures showed yesterday.

By Sao Khue

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