Local gold outpaces global price

Price of gold in Vietnam surged marginally over the previous day on May 11 while global price continued to be tagged by losing trend.

Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, bought the metal at VND41.64 million and sold at VND41.79 million as of 10.03am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND41.7 million and sold at VND41.8 million as of 11.18am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND40.95 million for buying, and at VND41.25 million for selling at 11.45am Vietnamese time.

According to gold traders, trading on bullion market became sluggish this morning. On previous day, when the metal fell to a nine-month low, people rushed to gold shops to buy gold, helping local bullion market to be vibrant after staying subdued for a long time.

Domestically, gold fetched VND1.9 million a tael, higher than global price.

On free market, dollars were bought at VND20,840 per dollar, and sold at VND20,860 per dollar, up VND10 per dollar over the previous day.

Meanwhile, Vietcombank continued to buy the greenback at VND20,820 per dollar, and sell at VND20,870 per dollar as of the previous day.

Internationally, gold headed for the worst weekly fall since March as concerns over the European sovereign-debt crisis continued to weigh on sentiment.

Yesterday, Germany warned that Greece could only receive financial aid from European Union if it sticks to the austerity programme which was strongly rejected by voters in the general election.

Gold for immediate delivery recovered as much as $4 an ounce to close at $1,594.4 an ounce in New York last night.

In Asia, the heavy metal declined at the trading session this morning as investors sold gold to make up losses for other basic commodities and securities. Asian stock markets were hit by JPMorgan Chase's $2 billion loss from a failed hedging strategy and by political turmoil in the eurozone. Gold cut $7.3 an ounce to trade at $1,587.1 an ounce at 11.05am Vietnamese time.

The euro exchange rate against the US dollar plunged to the lowest level in three and a half weeks at just above $1.29 a Euro in Tokyo this morning.

Crude oil futures for June delivery rose $0.18 a barrel to trade at $95.92 a barrel at 11.20am Vietnamese time.

By Thuy Doan

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