Gold sinks to six-week low

The price of gold in Vietnam plunged to VND37.7 million a tael (1.2 ounces) on June 14 as global price tumbled 1.1 percent in the trading session in New York last night.

Most jewelers bought the metal at VND37.6 million and sold at VND37.7 million, the lowest level in the past six weeks.

Sacombank Jewelry Company bought the metal at VND37.63 million and sold at VND37.69 million as of 10 am local time.

Meanwhile, the Hanoi-based Phu Quy Jewelry bought SJC-brand gold at VND37.6 million and sold at VND37.68 million at the same time.

Trading on bullion market remained low as people lost appetite for the precious metal due to high saving interest rates.

Domestically, gold fetched around VND100,000 a tael lower than global price.

The dollar exchange rates against the Vietnamese dong were unchanged at commercial banks as of the previous day. State-owned Vietcombank bought the greenback at VND20,540 and sell at VND20,600.

Meanwhile, the interbank US dollar exchange rate still stood at VND20,618, the lowest level since February 12.

Internationally, gold declined at a steepest pace in one month as investors dumped gold to take profits to make up their losses of securities investment channel.

Gold for immediate delivery fell as much as $16.8 an ounce over the previous trading session, or 1.1 percent, to settle at $1,516.3 an ounce on the Comex in New York.

In Asia, the metal recovered this morning. Spot gold rose as much as $4.6 an ounce over the closing price in New York to trade at $1,520.9 an ounce as of 10:45 am Vietnamese time.

Standard and Poor’s rating agency downgraded Greece’s credit rating for three levels to the lowest level CCC.

Uncertain economic signals from the US, Japan, and the Europe are causing depreciation pressure on essential commodities, including gold and crude oil. However, gold plays the role as a high-safety investment channel, therefore the metal remains in a tug of war to determine its direction.

In medium term, gold is still well-supported as a difficult economy forces investors to seek for investment channels like gold. In addition, with a high inflation rate in China, Chinese people will continue to buy the metal heavily. Statistics showed that inflation rose to 5.5 percent year-on-year in May in China, the highest level since 2008.

The euro exchange rate against the US dollar was at $1.44 a euro in Tokyo this morning.

Crude oil futures for July settlement fell as much as 2 percent a barrel to close at $97.3 a barrel on the New York Mercantile Exchange.

This morning, crude oil traded at above $97.1 a barrel as of 11 am Vietnamese time.

By Linh Nga

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