Gold sinks below VND42.5 million

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SaiGon GP English - 30 month(s) ago 5 readings

Gold sinks below VND42.5 million

Price of gold in Vietnam sank to its lowest level since end of last year on May 4 after global price plunged by 1.1 per cent at the trading session in New York last night.

(Photo: SGGP)

Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, collected the metal at VND42.25 million and sold at VND42.45 million as of 11.18am Vietnamese time. Earlier, the metal retreated to VND42.22 million for buying, and VND42.42 million for selling, the lowest level since the end of December last year.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND42.37 million and sold at VND42.47 million as of 11.36am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND41.9 million for buying, and VND42.2 million for selling at 10.30am Vietnamese time.

Domestically, gold fetched around VND1.3 million a tael, higher than global price.

Big jewellers in Hanoi said that buying demand rebounded this morning when the heavy metal declined further from VND43 million a tael, but traders were mostly small investors. In general, trading on bullion market remained subdued.

Nguyen Cong Tuong, deputy head of Sales at the Saigon Jewellery Company, said that some big investors recently brought thousand taels of gold to his company to sell. These investors possibly bought gold at higher levels than the current price level and they worried that the new policy might have a negative effect on their investment so they had to sell gold to cut losses.

On free market, dollars were bought at VND20,830 per dollar, and sold at VND20,850 per dollar, down VND10 per dollar from the previous day.

Vietcombank also lowered its rate by VND10 per dollar over the previous day to buy the greenback at VND20,820 per dollar, and sell at VND20,870 per dollar.

Internationally, gold sank as the US initial jobless claims data was better than expected.

Gold for immediate delivery fell as much as $17.9 an ounce, or 1.1 per cent, to close at $1,636.8 an ounce in New York last night, the lowest level in the past week.

In Asia, the metal recovered marginally at the trading session this morning. Spot gold regained $1.3 an ounce to trade at $1,638.1 an ounce at 10.25am Vietnamese time.

The euro exchange rate against the US dollar was at nearly $1.32 a euro in Tokyo this morning.

Crude oil futures for June delivery rose $0.12 a barrel to trade at $102.66 a barrel at 10.30am Vietnamese time.

Today, investors are waiting for release of US payrolls report, which could revive hopes of a third round of US Federal Reserve bond buying.

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