Gold nose-dives VND700,000 per tael

The price of gold in Vietnam dropped by VND700,000 a tael (1.2 ounces) over the previous day on December 8 as the global prices slumped 1.6 percent.

Saigon Jewelry Company, the biggest gold shop in Vietnam, bought the metal at VND35.93 million and sold at VND36.03 million as of 10 am local time.

Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND36 million and sold at VND36.15 million as of 9:15 am local time.

At the same time, gold was bought at VND35.98 million and sold at VND36.15 million at Bao Tin Minh Chau.

Domestically, gold fetched VND550,000 a tael higher than global prices.

A sharp correction in gold price this morning which prompted gold traders to expand the gap between buying and selling prices caused by a weakening global prices and a declining US dollar exchange rate on free market.

Yesterday, the US dollar fell by VND200 per dollar over the previous day. This morning, dollars were bought at VND21,080 and sold at VND21,150 on free market in Hanoi.

Globally, gold moved wildly in the trading floor in New York. After hitting a new record of US$1,432.5 an ounce, the metal reversed due to profit-taking and a pressure caused by a stronger greenback, sinking to $1,395 an ounce some time.

Gold for immediate delivery closed at $1,402.1 an ounce, declining $22.6 an ounce, or 1.6 percent on the Comex in New York.

In Asia, gold continued heading south. Spot gold lost $7 an ounce over the closing price in New York to trade around $1,395.1 an ounce as of 9:30 am Vietnamese time.

SPDR Gold Trust, the world’s largest exchange-traded fund backed by bullion, sold 0.3 metric tons of gold, reducing its holdings to 1,297.7 metric tons.

The US Dollar Index, which tracks the greenback’s strength against a basket of six major currencies, gained 0.5 percent yesterday. The euro exchange rate against the US dollar fell to below $1.33 a euro in Tokyo this morning from above this level the previous day.

Ireland is under pressure to pass legislation to receive an 85 billion-euro ($112.4 billion) bailout. Lawmakers yesterday passed an initial series of votes on a 6 billion-euro budget in parliament in Dublin. The government faces at least three more votes, including a separate ballot on cuts in welfare payments before the budget is approved.

The greenback strengthened 3 percent versus 10 other major currencies in the past month while the euro depreciated 2.4 percent.

Crude oil futures for January settlement some time climbed to a 26-month high of $90.76 a barrel in the trading session in New York. However, by the end of the trading session, crude oil plunged 0.8 percent to close at $88.69 a barrel.

This morning, crude oil slid to below $88 a barrel.

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