Gold jumps after sharp correction

The price of gold in Vietnam began July 2 at VND500,000 a tael (1.2 ounces) lower than previous day after global price, having slumped 3.5 percent in last night’s trading session.

Domestically, the metal started at VND28 million for buying and VND28.1 million for selling. However, the local price was quickly joined the global recovery momentum, rebounding to trade at around VND28.3 million a tael.

At Sacombank Jewelry Co., gold was bought at VND28.28 million and sold at VND28.32 million.

Saigon Jewelry Co., the biggest gold shop in Vietnam, purchased the metal at VND28.27 million and sold at VND28.35 million.

The dollar exchange rate against Vietnamese dong on free market continued to climb, to VND19,130 per dollar, after touching VND19,110 last morning.

Meanwhile, the rate at commercial banks remained nearly unchanged as of yesterday. Dollars were bought VND19,040 and sold at VND19,095.

Internationally, bullion posted the biggest fall in five months amid signs that the European financial industry may be in better shape than estimated, curbing demand for the metal as a safe haven.

After swinging within the wide range of $1,195 to $1,243 an ounce, spot gold closed at $1,200.4, losing $43 an ounce.

Gold futures for August delivery fell as much as $39.2, or 3.1 percent, to $1,206.7 an ounce, the lowest level since May 25.

In Asia, this morning, the metal revised as investors promoted buying after prices fell. Spot gold traded at near $1,208 an ounce as of 10:30 am Vietnamese time.

Holdings at SPDR Gold Trust dropped by 1.2 metric tons to 1,319.2, its website showed.

According to analysts, this correction is not likely to trigger investor selling as the overall economic outlook remains gloomy, keeping demand for the metal alive.

The euro headed for the biggest gain since March 2009 against the dollar after European banks borrowed less than the amount they are due to repay.

The euro exchange against the US dollar was above $1.25 this morning, up from just over $1.22 yesterday.

The European Central Bank said financial institutions asked for less money than some analysts predicted for the three-month offering.

Crude oil fell due to slumping US stock markets and alarming reports on the world’s largest economy.

The US National Association of Realtors said pending sales of existing homes decreased by 30 percent in May, higher than forecasted rate of 12.5 percent.

Initial jobless claims increased by 13,000 to 472,000 in the week ended June 26, Labor Department figures showed. The number of initial jobless claims reached 4.5 million as of June 19.

The Institute for Supply Management’s manufacturing gauge fell to 56.2 last month from 59.7 in May.

August-delivery light sweet crude oil dipped $2.68 a barrel to close at $72.95 a barrel.

This morning, crude oil rose slightly to above $73 a barrel.

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