Gold makes correction after hitting seven-month high

The price of gold in Vietnam retreated VND400,000 a tael (1.2 ounces),  down from the seven-month high it reached on the previous day, with investors booking profits as the international gold price hit a record high June 22.

The precious metal extended its rising momentum of last weekend on the European market, setting a new record of US$1,265.2 an ounce yesterday. Domestically, the metal climbed to VND28.75 million a tael, the highest level since November last year. However, it soon declined with the weakening global price.

This morning, gold was bought at VND28.3 million and sold at VND28.35 million at most gold shops.

Bullion market saw robust trading yesterday as investors sold gold to lock in gains while the demand from gold traders was rather high.

Globally, after setting European records, gold reversed after the start of the trading session in New York, losing nearly $36 from $1,266.5 to $1,231. The metal closed at $1,233.6 an ounce, a decrease of $23.9 an ounce over the previous trading session. This was the steepest decline in the past month.

Gold futures for August delivery also dropped $18.6, to $1,240.7 an ounce.

In Asia, spot gold edged up to $1,239.4 an ounce, as of 10am Vietnamese time.

The euro exchange rate against the US dollar fell to just above $1.23, from $1.24 in Tokyo this morning. The shared currency dropped after a European Central Bank official announced some banks in the region faced increasing funding problems.

Crude oil slid after gaining for two consecutive trading sessions.

Light sweet crude oil futures for July settlement were trading above $77.2 a barrel. The liquid rose $0.64 a barrel, or 0.8 percent, to close at $77.82 a barrel in New York last night.

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