Gold hovers around VND28 million

The price of gold in Vietnam recovered by VND100,000 a tael (1.2 ounces) over the previous day on June 16 as global price advanced by more than 1 percent after investors sought the metal as an alternative investment channel.

In Ho Chi Minh City, Saigon Jewelry Co. purchased gold at VND28.05 million and sold at VND28.11 million as of 10 am local time.

Sacombank Jewelry Co. was trading gold at VND28.09 million.

In Hanoi, SJC-brand gold was bought at VND28.06 million and sold at VND28.12 million.

Domestically, gold fetched VND450,000 a tael lower than global price. According to gold traders, this is an opportunity to export gold.

The precious metal moved up and down continuously in the past few days. However, prices fluctuated at a modest pace that weakened the demand for the metal, sending bullion market into muted mood.

Globally, gold climbed the most in a week on demand for an alternative investment to currencies.

Spot gold closed up $13 an ounce, or 1.1 percent, to $1,235.4 an ounce in New York.

Gold futures for August delivery also rose $1.9 to $1,226.4.

This morning, bullion was trading around $1,234 an ounce.

Although Wall Street experienced a strong recovery yesterday, it couldn’t prevent capital from flowing into the metal, which has become an important investment channel to replace currencies.

The euro is expected to suffer many adverse effects caused by the European’s sovereign debt crisis. Investors concerned that the debt crisis would escalate and slowdown the progress of global economic recovery.

A report by the European Commission said Spain and Portugal’s governmental debts would hike in the coming years and additional measures to cut budget deficit are needed.

Meanwhile, outlook on the US dollar wasn’t quite brilliant as the country’s public debt also hit a record and was expected to climb higher.

The greenback slid for the second day against a basket of six major currencies. The euro exchange rate was at $1.23 in Tokyo this morning.

Crude oil sharply gained, thanks to the greenback’s debasement and a strong rally in Wall Street.

Light sweet crude oil added $1.82 a barrel, or 2.4 percent, to close at $76.94 a barrel, the highest closing price since May 6.

The liquid surpassed $77 a barrel this morning.

Saigon Times

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