Gold slightly sinks

The price of gold in Vietnam remained hovering around VND37.4 million a tael (1.2 ounces) on May 20 as the global prices slightly retreated in the trading session last night in New York.

Sacombank Jewelry Company bought gold at VND37.29 million and sold at VND37.37 million as of 9:55 am local time.

Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND37.29 million and sold at VND37.39 million at the same time.

Domestically, gold fetched VND150,000 a tael lower than global price.

The metal was expected to stall for longer due to low demand on bullion market and a stable US dollar exchange rate against the Vietnamese dong.

Internationally, gold declined in New York on speculation that slowing inflation would erode the demand for the precious metal as a hedge against rising consumer prices.

Gold for immediate delivery sank US$3.1 an ounce to close at $1,494.8 an ounce on the Comex in New York.

In Asia, gold recovered as low prices spurred investor demand. Spot gold was traded at nearly $1,497 an ounce as of 10:40 am Vietnamese time.

SPDR Gold Trust, the largest exchange traded fund backed by bullion, sold 1 metric tons, reducing holdings to 1,191.3 metric tons.

The euro and the US dollar still played tug of war, of which, the former was under losing pressure caused by the European sovereign-debt crisis. Meanwhile, the latter was also in a disadvantage situation as recent data showed that the US economy remained ailing. The euro exchange rate against the US dollar was at $1.43 a euro in Tokyo this morning.

The US Labor Department announced that initial jobless claims for the week ended on May 15 decreased but still stayed above 400,000 for six straight weeks, arousing concerns over job market. Meanwhile, sales of previously owned home in April also plunged.

Crude oil futures for June delivery fell by $1.66 a barrel to close at $98.44 a barrel on the New York Mercantile Exchange.

This morning, crude oil recovered to around $99 a barrel.

By Vinh Nghi

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