Low buying demand sends gold to below VND48 million

The price of gold in Vietnam sharply retreated to below VND48 million a tael (1.2 ounces) on September 5 as buying demand weakened although global price slightly changed in the trading session this morning.

Sacombank Jewelry Company bought the metal at VND47.51million and sold at VND47.79 million at 10:15 am local time.

Saigon Jewelry Company, the biggest gold shop in Vietnam, quoted the price at VND47.55 million for buying and VND47.8 million for selling in Ho Chi Minh City.

Hanoi-based Phu Quy Jewelry Company bought SJC-brand gold at VND47.55 million and sold at VND47.9 million at the same time.

Domestically, gold fetched VND500,000-600,000 a tael higher than global price.

The dollar inter-bank exchange rate remained stable at VND20,628. Vietcombank bought dollars at VND20,830 and sold at VND20,834. Asia Commercial Bank and Eximbank collected the greenback at VND20,810 and sold at VND20,834.

On free market, the US currency was traded around VND20,900-21,020 per dollar.

Internationally, the heavy metal declined after slightly rising in the trading session this morning.

Spot gold fell by $3.4 an ounce over the closing price in New York to trade at $1,881.8 an ounce at 10:15 am Vietnamese time.

The metal is expected to climb higher this week. The US Federal Reserve is prone to announce another quantitative easing package to boost economic growth in its policy meeting on September 20 and 21.

Meanwhile, the European sovereign-debt crisis is worsening as Greece reached a deadlock in negotiations with the European Union and the International Monetary Fund. The country failed to meet requirements in cutting budget deficit.

By Tuy Phong

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