Gold slides further

Price of gold in Vietnam dropped by VND200,000 a tael (1.2 ounces) over the previous day on January 14 as global price declined sharply on a stronger US dollar.

Sacombank Jewelry Company bought gold at VND43.25 million and sold at VND43.65 million as of 9:20am Vietnamese time.

Saigon Jewelry Company, the biggest gold processor and trader in Vietnam, collected gold at VND43.4 million and sold at VND43.7 million as of 7:58am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND43.4 million and sold at VND43.68 million as of 9:31am Vietnamese time.

Meanwhile, Bao Tin Minh Chau Jewelry Company quoted the price at VND42.35 million for buying, and VND42.65 million for selling at 11:48am Vietnamese time.

Domestic gold fetched around VND1.8 million, higher than global price.

Internationally, gold fell drastically as the US dollar strengthened after Standard & Poor’s cut credit ratings of nine countries in the eurozone, including France and Austria, sapping demand for the precious metal as an alternative asset.

S&P cut the ratings of Italy, Spain, Portugal and Cyprus by two notches and the standings of France, Austria, Malta, Slovakia and Slovenia by one notch each. It also put 14 eurozone nations on negative outlook for further downgrade, including France, Austria, Finland, the Netherlands and Luxembourg.

After S&P’s decision, the euro exchange rate against the US dollar dropped to $1.26.24 a euro, the lowest level since August 25, 2010.

Gold for immediate delivery fell as much as $8 an ounce to close at $1,639.7 an ounce on the Comex in New York.

Gold futures for February settlement slid $16.9 an ounce, or 1 percent, to close at $1,630.8 an ounce.

By Thuy Doan

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