Gold sinks on global decline

The price of gold in Vietnam sank to below VND47.6 million a tael (1.2 ounces) on September 7 due to depreciation pressure from global market.

Gold was bought at VND47.48 million and sold at VND47.68 million at most gold shops in Ho Chi Minh City.

Saigon Jewelry Company, the biggest gold shop in Vietnam, bought gold at VND47.5 million and sold at VND47.7 million at 10:50 am local time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND47.5 million and sold at VND47.75 million at the same time.

Domestically, gold fetched around VND400,000 a tael higher than global price.

On foreign currency market, the dollar exchange rate on free market continued to cool down. The greenback was bought at VND20,830, and sold at VND20,900, a decrease of VND60 per dollar in buying price and VND70 per dollar in selling price over the previous day.

Meanwhile, the rate remained stable at commercial banks.

Internationally, gold dropped for a second day in New York as a rebound in equities trimmed demand by investors seeking to protect their wealth against declining currencies and economic turmoil.

Gold for immediate delivery lost as much as $26.7 an ounce, or 1.4 percent, to close at $1,874.6 an ounce on the Comex in New York.

In Asia, the metal was almost unchanged in the trading session this morning. Spot gold was traded at $1,874.6 an ounce at 10:30 am Vietnamese time.

In the trading session in Europe yesterday, the metal hit an all-time high at $1,920 an ounce. However, the heavy metal plummeted as the Swiss franc tumbled after the central bank set a minimum exchange rate of 1.20 per euro and said it would defend the target with the utmost determination if needed.

Crude oil futures for October delivery sank $0.43 a barrel, or 0.5 percent, to close at $86.02 a barrel on the New York Mercantile Exchange.

By Mai Tuyet

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