Gold contracts VND200,000 per tael

The price of gold in Vietnam retreated to VND39.3 million a tael (1.2 ounces) on July 22 as progress on raising the US debt ceiling was causing losing pressure on the precious metal.

Saigon Jewelry Company bought the metal at VND39.28 million and sold at VND39.34 million as of 10 am local time, a decrease of VND190,000 a tael.

Meanwhile, the Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND39.26 million and sold at VND39.35 million at the same time.

Domestically, gold fetched around VND200,000 a tael lower than global price.

According to jewelers, people started to buy gold again on speculation that the metal would climb higher.

The US dollar exchange rate against the Vietnamese dong sharply declined at commercial banks this morning. State-owned Vietcombank bought the greenback at VND20,570 and sold at VND20,630, a drop of VND40 per dollar in selling price over the previous day. The inter-bank exchange rate stood firmly at VND20,608 per dollar.

Internationally, gold dropped as European leaders agreed on a multibillion-euro rescue package for Greece, curbing contagion concerns. In addition, a record rally prompted sales.

Gold for immediate delivery fell as much as $11.7 an ounce over the previous trading session, or 0.7 percent, to close at $1,591.2 an ounce on the Comex in New York.

In Asia, gold continued to sink in the trading session this morning. Spot gold was traded at $1,591 an ounce as of 10:30 am Vietnamese time.

With new progress, the US Congress may reach an agreement on raising the country’s debt ceiling before August 2.

Meanwhile, Euro-area leaders announced 159 billion euro ($229 billion) in aid for Greece late yesterday after eight hours of talks in Brussels, of which $37 billion contributed by private banks.

SPDR Gold Trust, the largest exchange traded fund backed by bullion, sold 3.4 metric tons, cutting its holdings to 1,242.7 metric tons.

The euro exchange rate against the US dollar rose to $1.44 a euro in Tokyo this morning from $1.43 the previous day.

Crude oil futures for August delivery gained as much as $0.73 a barrel to close at $99.13 a barrel on the New York Mercantile Exchange. Earlier, crude oil surged to $100 a barrel. – SGGP

Tags: vietnam gold, Vietnam gold market, Vietnam gold prices