Gold sharply drops

The price of gold in Vietnam sank VND300,000 a tael (1.2 ounces) on January 21 as global prices tumbled 1.8 percent.

Gold was bought at nearly VND35.2 million and sold around VND35.3 million, the lowest level since the middle of December last year, at most gold shops as of 10 am local time.

Sacombank Jewelery Company bought gold at VND35.18 million and sold at VND35.26 million.

Saigon Jewelry Company, the biggest gold shop in Vietnam, fixed the prices at VND35.2 million for buying and VND35.26 million for selling.

Meanwhile, Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND35.2 million and sold at VND35.3 million.

Domestically, the precious metal fetched VND1 million higher than global price.

The US dollar exchange rate significantly raised on free market this morning. Dollars were bought at VND21,000 and sold at VND21,040, an increase of VND30 per dollar over the previous day.

Internationally, gold nosedived to the lowest level in the past two month on speculation that China would tighten its monetary policy.

Gold for immediate delivery fell as much as US$24.9 an ounce, or 1.8 percent, to $1,346.6 an ounce on the Comex in New York.

In Asia, the metal faintly restored, fluctuating around $1,350 an ounce this morning.

The metal has lost 5 percent this month as concerns on the European debt crisis and the US’s economy were eased while concern that China would take more steps to restrain its economy was rising.

The greenback exchange rate against the euro was at $1.35 a euro in Tokyo this morning. The US dollar strengthened after purchases of existing houses in the US unexpectedly jumped in December amid initial jobless claims sharply dropped.
 
SPDR Gold Trust, the largest exchange-traded fund backed by bullion, has sold 29 metric tons, sending its holdings to 1,251.4 metric tons, the lowest level since May 2010.

Crude oil futures for February delivery tripped for three consecutive days, losing 2 percent a barrel to close at $88.86 a barrel in the New York Mercantile Exchange, the lowest level since January 7.

By Thuy Doan

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