Gold sinks; dollar treads water

The price of gold in Vietnam shed another VND100,000 a tael (1.2 ounces) over the previous day on November 16 as global price steeply dropped on a stronger US dollar in the trading session in Asia  this morning.

Sacombank Jewelry Company bought gold at VND46.15 million and sold at VND46.35 million as of 10 am Vietnamese time.

Saigon Jewelry Company, the biggest gold processor and trader in Vietnam, collected gold at VND46.1 million and sold at VND46.3 million as of 10:41 am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND46.1 million and sold at VND46.35 million as of 11:05 am Vietnamese time.

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

On black market in Hanoi, dollars were bought at VND21,340 per dollar, and sold at VND21,370-21,380 per dollar. This rate has been maintained for nearly a week.

Internationally, gold sharply declined as the US dollar strengthened on signs showing that the European sovereign-debt crisis is worsening.

The region’s turmoil is threatening France, the second largest economy in the region. Italy’s 10-year bonds rose again above 7 percent threshold. Meanwhile, Greece’s new government failed to draw a feasible solution to soothe the sovereign-debt crisis.

Gold for immediate delivery rose as much as $0.8 an ounce to close at $1,782.1 an ounce on the Comex in New York.

In Asia, spot gold dropped $12.4 an ounce, or 0.7 percent, to trade at $1,770.7 an ounce at 11:05 am Vietnamese time.

The euro exchange rate against the US dollar sank to below $1.35 a euro in Tokyo this morning.

Crude oil was traded at $98.56 a barrel on the New York Mercantile Exchange at 12:58 pm Vietnamese time.

By Thuy Doan

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