Gold treads water; dollar accelerates

The price of gold in Vietnam hovered around VND44 million per tael (1.2 ounces), almost unchanged as of the previous day, on October 19 as global price stalled.

Sacombank Jewelry Company bought gold at VND43.76 million and sold at VND43.94 million as of 10:50 am local time.

Saigon Jewelry Company, the biggest gold shop in Vietnam, quoted the price at VND43.6 million for buying and VND43.8 million for selling.

Hanoi-based Phu Quy Jewlery Company purchased SJC-brand gold at VND43.8 million and sold at VND44.03 million at the same time.

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

Gold retreated to around VND44 million a tael last evening as global price steeply dropped.

The State Bank of Vietnam raised interbank dollar exchange rate the ninth time this month to VND20,733 per dollar, an increase of VND10 per dollar, this morning. Vietcombank bought dollars at VND20,935, and sold at VND20,940. On black market, dollars were bought at VND21,450, and sold at VND21,500, an increase of VND30 per dollar over the previous day.

Internationally, gold strongly declined as the US dollar strengthened on concern that Europe’s sovereign-debt turmoil is worsening after Moody’s Investors Service cut Spain’s credit rating by two levels, sapping the appeal of the precious metal as an alternative asset.

Gold for immediate delivery lost as much as $15.6 an ounce to close at $1,656.1 an ounce on the Comex in New York.

Spot gold was traded at US$1,662.3 an ounce, up $6.2 an ounce over the closing price in New York, at 10:20 am Vietnamese time.
Crude oil futures traded at $88.25 a barrel on the New York Mercantile Exchange at 10:40 am Vietnamese time.

The euro exchange rate against the US dollar was unchanged as of the previous day, standing at below $1.38 a euro in Tokyo at the same time.

By Thuy Doan

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