Gold retreats to nearly VND42 million

Price of gold in Vietnam hit a record low since the end of last year on May 8 as global price continually declined on weakening euro.

Price of gold in Vietnam retreats to nearly VND42 million a tael on May 8. (Photo: SGGP)

Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, bought the metal at VND41.85 million and sold at VND42.15 million as of 11.32am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND42.08 million and sold at VND42.18 million as of 11.35am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND41.7 million for buying, and at VND41.95 million for selling at 11.45am Vietnamese time.

Domestically, gold fetched VND1.1 million a tael, higher than global price.

On free market, dollars were bought at VND20,830 per dollar, and sold at VND20,850 per dollar, unchanged as of the previous day.

Meanwhile, Vietcombank bought the greenback at VND20,835 per dollar, and sold at VND20,910 per dollar, an increase of VND15 per dollar in buying price, and VND40 per dollar in selling price from the previous day.

Internationally, gold prolonged losing momentum as concerns that the eurozone would fail to fight back the region’s sovereign debt crisis continued to weigh on the shared currency, urging investors to dump the euro, causing pressure on essential commodities, including gold.

Gold for immediate delivery fell as much as $3.6 an ounce, or 0.2 per cent, to close at $1,639.5 an ounce in New York last night.

In Asia, the heavy metal lost $1.9 an ounce to trade at $1,637.6 an ounce at 9.30am Vietnamese time.

However, gold was backed by physical demand from China and India. According to Hong Kong Census and Statistics Department, China imported 62,907 metric tonnes of gold in March, up 59 per cent compared to that in February.

Meanwhile, gold imports in India could rise on pent-up demand from jewellers as the country’s government had just announced the abolishment of import tariff on jewellery it imposed in March.

The euro exchange rate against the US dollar was above $1.3 a euro in Tokyo this morning.

Crude oil futures for June delivery slid $0.15 a barrel to trade at $97.79 a barrel at 9.40am Vietnamese time.

By Thuy Doan

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