Gold in Vietnam slips as global prices make correction

Gold prices in Vietnam slid by VND100,000 a tael over the previous day to below VND28 million a tael (1.2 ounces) on June 15 amid corrections within the global market.

Sacombank Jewelry Co. sold gold at VND27.93 million, and bought at VND27.97 million as of 10 am local time.

Saigon Jewelry Co. purchased gold at VND27.91 million and sold at VND27.97 million.

Meanwhile, in Hanoi, SJC-gold brand at Phu Quy Jewelry was bought at VND27.92 million and sold at VND27.98 million.

The VND28 million appeared less sustainable, as the global price failed to maintain a rising trend. Meanwhile, a muted bullion market caused domestic prices to drop significantly below the global price. Currently, the gap stands at about VND300,000 a tael.

Globally, the precious metal dropped as a stronger euro sapped its attractiveness. However, gold’s role as a safe haven returned by the end of trading after bad news from Europe caused Wall Street to dive.

Gold for immediate delivery fell to US$1,216 an ounce in New York last night.

Gold futures for August delivery lost $5.7 to $1.224.5 an ounce. The metal has lost 2.4 percent since it hit record highs on June 8.

In Asia, the yellow metal declined $0.8 an ounce to $1,220.6 as of 9:40 am Vietnamese time.

Greece’s credit rating was cut to non-investment grade, or junk, by Moody’s Investors Service, threatening to further undermine demand for the debt-strapped nation’s assets as it struggles to rein in its budget deficit.

Standard & Poor’s had cut the Mediterranean nation’s rating to non-investment status on April 27.

Analysts said that gold may gain, especially after Greece’s rating was downgraded, bolstering demand for the metal as a mean of protecting wealth.

The euro was trading at $1.22 in Tokyo this morning. Earlier, the shared currency climbed to $1.23 in New York. The euro was losing ground as investors expected that the European debt crisis may badly affect to economic outlook in the region.

Crude oil surged $1.34 a barrel to close at $75.12 a barrel on New York Mercantile Exchange.

Light sweet crude oil futures for July settlement was trading around $75 a barrel this morning in Asia.

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