Gold rises to VND45 million; dollar slumps

Gold prices in Vietnam jumped to above VND45 million a tael (1.2 ounces) on November 30 as global prices managed to maintain a rising trend due to positive news coming out of Europe.

Sacombank Jewelry Company (SBJ) bought gold at VND44.85 million and sold at VND45 million at 10:30am Vietnamese time.

Saigon Jewelry Company (SJC), the biggest gold processing and trading company in Vietnam, collected gold at VND44.82 million and sold at VND45.02 million around 10:36am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND44.8 million and sold at VND45.03 million at 10:30am Vietnamese time.

Bao Tin Minh Chau Jewelry Company quoted the price at VND44.15 million for buying, and VND44.4 million for selling at 12:17pm Vietnamese time.

Trading on bullion market became muted recently with poor trading volume. Sacombank Jewelry Company traded within 1,000 taels yesterday. Meanwhile, Saigon Jewelry Company bought 500 taels, and sold 2,000 taels.

According to experts from Sacombank Jewelry Company, under effects of a stable dollar exchange rate, and efforts to stabilize bullion market of the State Bank of Vietnam, as well as a muted local bullion market, domestic gold price is expected to be mainly affected by global price.

Domestically, gold fetched VND1 million, higher than global price.

On the black market, one dollar was bought at VND21,190, and sold at VND21,230, a decrease of VND60 per dollar in buying price, and VND60 per dollar in selling price over the previous day.

Internationally, gold climbed after European finance ministers agreed to increase size of the European Financial Stability Facility rescue fund but could not say by how much, and may turn to the International Monetary Fund for more help after Italy’s borrowing rose to a record high of nearly 8 percent.

Gold for immediate delivery gained as much as $5.5 an ounce to close at $1,716.4 an ounce on the Comex in New York.

In Asia, spot gold rose $7 an ounce to trade at $1,723.4 an ounce at 10:30am Vietnamese time.

Analysts forecast that the European Central Bank would lower their benchmark interest rate to stimulate economic growth at a meeting next week.

Meanwhile, the health of the US economy remained faltering after report showed a sudden slump in home price in September.

The euro exchange rate against the US dollar remained at $1.33 a euro in Tokyo this morning.

By Thuy Doan

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