Gold traded below VND44 million

Price of gold in Vietnam sank to below VND44 million a tael (1.2 ounces) on December 14 as global price lost another 2.1 percent to the lowest level in the past two months.

Sacombank Jewelry Company bought gold at VND43.73 million and sold at VND43.98 million as of 11:15am Vietnamese time.

Saigon Jewelry Company, the biggest gold processing and trading company in Vietnam, collected gold at VND43.73 million and sold at VND43.98 million around 10:58am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND44 million and sold at VND44.14 million at 12:06pm Vietnamese time.

Meanwhile, Bao Tin Minh Chau Jewelry Company quoted the price at VND42.93 million for buying, and VND43.1 million for selling at 1:25pm Vietnamese time.

It is expected that buying demand would rise today when the prices continued to drop sharply. Yesterday, bullion market heated up as low prices prompted people to buy gold. However, even when non-SJC-brand gold is at appealing prices, only SJC-brand gold is likely to attract buyers, as gold keepers will not suffer a huge loss when they want to sell gold.

Domestically, SJC-brand gold fetched VND2.1 million a tael, higher than global price as the former declined at a slower pace than the latter.

The State Bank of Vietnam unexpectedly raised the interbank exchange rate by VND10 per dollar after pinning it at VND20,803 for 40 days. Most commercial banks sold dollars at VND21,012 per dollar, whereas Vietcombank sold the greenback at VND21,019 per dollar.

On black market, one dollar was bought at VND21,150, and sold at VND21,180, an increase of VND30 per dollar over the previous day.

Internationally, gold fell as the US dollar regained strength after the US Federal Reserve refrained from announcing any measures to ease monetary policy, curbing demand for the precious metal as an alternative asset.

The US Dollar Index, a six-major currency gauge against the greenback’s strength, climbed to the highest level in 11 months. The euro exchange rate again the US dollar was just above $1.3 a euro in Tokyo this morning from $1.32 the previous day.

Investors were unnerved by the possibility of a mass credit downgrade in the euro zone as soon as this week after their leaders failed to present a convincing plan to end the region’s sovereign-debt turmoil in a meeting last weekend.

Gold for immediate delivery lost as much as $34.4 an ounce, or 2.1 percent, to close at $1,631.9 an ounce on the Comex in New York.

In Asia, bottom fishing sent the heavy metal a little higher this morning. Spot gold was traded at $1,638.2 an ounce, up $5.5 an ounce at 8:30am Vietnamese time.

Today, investors are watching Italy’s 5-year bonds sales. Yesterday, Italy’s bond yields strongly rose on concern that the country’s credit rating might be cut.

By Thuy Doan

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