Gold suddenly drops

The price of gold in Vietnam unexpectedly fell by VND1 million a tael (1.2 ounces) on November 19 while global prices rarely moved, hovering around $1,360 an ounce this morning.

Saigon Jewelry Co. purchased gold at VND35.1 million and sold at VND35.4 million as of 11 am local time.

At the same time, Bao Tin Minh Chau bought gold at VND35.1 million and sold at VND35.55 million.

Domestically, gold changed wildly at a higher pace than global prices this morning, prompting jewelers to extended their trading gap between buying and selling prices to VND300,000-450,000.

Some gold traders said that unusual moves of gold price this morning showed signs of bubble and speculation.

Domestic gold prices fetched around VND800,000 a tael higher than global prices. Earlier, the rates some time were VND1.6 million higher.

The dollar exchange rate on free market also slightly slid this morning. Dollars were bought at VND21,000 and sold at VND21,150 in Hanoi.

Internationally, gold climbed as the euro recovered on confidence that the European Union would rescue Ireland from its debt crisis.

Gold for immediate delivery advanced $17.7 an ounce, or 1.3 percent, to close at $1,354.5 an ounce on the Comex in New York.

In Asia, gold continued rising this early morning. However, the precious metal reversed by mid-day, losing around $6 an ounce to trade at $1,354 an ounce as of 11:30 am Vietnamese time.

SPDR Gold Trust, the largest exchange-traded fund backed by bullion, dumped 4.6 metric tons yesterday, slashing its holdings to 1,286.3 metric tons, the company’s website showed.

This morning, the euro exchange rate against the greenback stood above $1.36 in Tokyo from below $1.36 a euro the previous day.

Irish Central Bank Governor said he expected the country to ask the EU and the International Monetary Fund for tens of billions of euros to rescue its banks.

Crude oil futures for December delivery soared $1.41 a barrel, or 1.8 percent, to close at $81.85 a barrel on the New York Mercantile Exchange.

By Thuy Doan

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