Local gold price continues outpacing global price

The price of gold in Vietnam was stable below VND44 million per tael (1.2 ounces) on October 12 as global prices were pinned around US$1,660-1,670 an ounce.

Sacombank Jewelry Company bought gold at VND43.51 million and sold at VND43.79 million as of 8 am local time.

Saigon Jewelry Company, the biggest gold processor and trader in Vietnam, quoted the price at VND43.55 million for buying, and VND43.85 million for selling at 11:20 am in Ho Chi Minh City.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND43.7 million and sold at VND43.95 million at the same time.

Despite government’s efforts to stabilize bullion market, the gap between local and international prices continued to be expanded. Domestically, gold fetched VND1.9 million a tael higher than global price.

The State Bank of Vietnam has allowed two more commercial banks, Southern Bank and Viet A Bank, to open offshore gold trading accounts, and sell gold to increase supply in domestic bullion market. This is the next effort of the government to bring local gold price to a reasonable rate against global price.

The interbank exchange rate remained at VND20,668 per dollar this morning. Vietcombank bought dollars at VND20,870, and sold at VND20,875.

Meanwhile, the US dollar exchange rate strongly escalated on free market. Dollars were bought at VND21,420, and sold at VND21,500, an increase of VND120 per dollar over the previous day.

International, gold declined on concern that the European sovereign-debt crisis is worsening after Slovakia unexpectedly rejected Europe’s enhanced bailout fund.

Gold for immediate delivery fell as much as $12.7 an ounce, or 0.8 percent, to close at $1,664.2 an ounce on the Comex in New York.

Spot gold gained $3.9 an ounce to trade at $1,668.8 an ounce at 10:50 am Vietnamese time.

The euro exchange rate against the US dollar was above $1.36 a euro in Tokyo at 11:20 am Vietnamese time.

Crude oil futures lost $0.59 a barrel to trade at $85.22 a barrel on the New York Mercantile Exchange at the same time.

By Thuy Doan

Other news