Gold struggles to stand at VND28 million

The price of gold in Vietnam remained hovering around VND28 million a tael (1.2 ounces) on July 23, despite a slight recovery in the global price.

Most jewelers bought the metal at VND28 million and sold at VND28.05 million. Earlier, the metal dropped to below VND28 million due to a sharp correction of global price. Domestic prices have continuously fluctuated around this mark for three days.

The trade gap between domestic and global prices gradually narrowed to VND180,000 a tael, as buying demand was not strong enough to maintain a wider gap. Local prices fetched more than VND500,000 a tael higher than global prices a few days ago.

The State Bank of Vietnam still had not allowed firms to import gold. However, firms will likely to face high risks if they import gold in this period, as prices are moving wildly.

Commercial banks continued to buy dollars at VND19,000-VND19,090 and sell at VND19,095-VND19,100.

On black market, greenbacks were bought at VND19,180 and sold at VND19,210.

Internationally, the gold rebounded as the greenback declined, prompting investors to seek the precious metal as an alternative asset.

Investors became optimistic after the US Federal Reserve chairman Ben Bernanke told Congress that the central bank was ready to take further policy actions should the US economy and labor market need support.

Rallying US stock markets eroded the appeal of the treasury bonds, causing the greenback to debase.

The euro exchange rate against the US dollar was at nearly $1.29 in Tokyo this morning, from $1.28 yesterday.

Spot gold rose as much as US$8.4 an ounce, or 0.7 percent, to close at $1,195.5 in New York.

In Asia, the metal swung between $1,196 and $1,198 an ounce this morning.

Today, international investors were waiting for stress-tests of European major banks. Analysts have been concerned that reports would reveal that banks are bearing huge losses.

Crude oil jumped to the highest level in 11 months. Crude oil futures for September delivery advanced $2.74 a barrel, or 3.6 percent, to finish at $79.3 a barrel.

This morning, the liquid dropped slightly.

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