Gold and dollar steeply fall

The price of gold in Vietnam fell by VND750,000 a tael (1.2 ounces) over the closing price the previous day on August 30 as global price slumped 2.2 percent in the trading session in New York last night.

Sacombank Jewelry Company bought the metal at VND46.01million and sold at VND46.34 million as of 10 am local time.

Saigon Jewelry Company, the biggest gold shop in Vietnam, quoted the price at VND45.9 million for buying and VND46.2 million for selling in Ho Chi Minh City. In Hanoi, the metal was bought at VND45.9 million and sold at VND46.22 million.

Hanoi-based Phu Quy Jewelry Company bought SJC-brand gold at VND45.95 million and sold at VND46.4 million at the same time.

Domestically, gold fetched VND1.5 million a tael higher than global price.

Trading on bullion market was poor as customers became more cautious when deciding to buy or sell gold.

On free foreign currency exchange market, the rate declined rapidly. Dollars were bought at VND21,020 and sold at VND21,080, a decrease of VND80 per dollar in buying price and VND100 per dollar in selling price.

Vietcombank continued quoting the rate at VND20,830 for buying and VND20,834 for selling. The inter-bank exchange rate remained stable at VND20,628 per dollar.

Internationally, gold sank as stock market rallied on optimistic news came out from Europe and the US, lessening demand for the precious metal as a haven asset.
A report showed that US consumer spending gained more than forecast in July. Meanwhile, Alpha Bank SA, Greece’s third- largest lender, will buy EFG Eurobank Ergasias SA and increase capital by as much as 3.9 billion euros ($5.7 billion) to ride out a deepening recession and the country’s sovereign debt crisis, boosting investor confidence.

Gold for immediate delivery dropped as much as $45.7 an ounce to close at $1,784 an ounce on the Comex in New York.

Gold futures for December settlement also lost $11.1 an ounce to finish at $1,786.6 an ounce.

In Asia, the metal slightly recovered in the trading session this morning. Spot gold was traded at $1,790.7 an ounce at 12 pm Vietnamese time.

Gold is receiving support from demand of buying gold material. Gold demand in India, the biggest user, may surge 25 percent during the festival season this year. Buying gold is considered auspicious during the religious festivals in India. The festival season this year starts with Eid this month and ends in October with Diwali, which is followed by the traditional wedding season.

Crude oil futures for October delivery rose $0.25 a barrel over the closing price in New York to trade at $87.52 a barrel at 10:50 am Vietnamese time.

The euro exchange rate against the US dollar stood at $1.45 in Tokyo at the same time.

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