Gold slumps sharply

Price of gold in Vietnam lost by VND200,000 a tael (1.2 ounces) over the previous day on June 27 as global price dropped at the trading session in New York last night on fears over deflation after recent reports showed a slowdown in global economic activity.

Saigon Jewelry Company, Vietnam’s biggest gold processer and trader, bought the metal at VND41.58 million and sold at VND41.73 million as of 10.10am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND41.62 million and sold at VND41.73 million as of 11.10am Vietnamese time.

Bao Tin Minh Chau Jewelry Company quoted price at VND40.25 million for buying, and at VND40.55 million for selling at 12.10pm Vietnamese time.

Domestically, gold fetched around VND2 million a tael, higher than global price.

On free market, the US dollar was bought at VND20,920 per dollar, and sold at VND20,940 per dollar, unchanged from the previous day.

Meanwhile, Vietcombank also kept the rate at VND20,860 per dollar for buying, and at VND20,920 per dollar for selling as of the previous day.

Eximbank purchased dollars at VND20,850 per dollar, and sold at VND20,910 per dollar, up VND10 per dollar in selling price over the previous day.

Internationally, gold fell on worries that a global economic slowdown triggered by a worsening debt crisis in Europe could prompt investors to seek safety in the US dollar.

Gold extended its winning streak to an 11th year in 2011 thanks to inflation fears, but markets are now worried that slow global economic activity caused by the debt crisis could urge jewelers, investors and speculators to curb spending.

Spot gold rose as much as $12.7 an ounce, or 0.8 percent, to close at $1,573.6 an ounce in New York last night.

In Asia, gold for immediate delivery rose $0.7 an ounce to trade at $1,574.3 an ounce at 10am Vietnamese time.

Euro exchange rate against the US dollar sank to the lowest level in the past two weeks after Spain’s borrowing costs rose sharply. Euro stood below $1.25 in Tokyo this morning.

Crude oil futures for July delivery rose $0.15 a barrel to trade at $79.51 a barrel at 10am Vietnamese time.

By Thuy Doan

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