Gold continues decline as investors opt to book profit

The price of gold in Vietnam slid by VND250,000 a tael (1.2 ounces) over the previous day, as global prices dropped below US$1,200 yesterday due to profit-taking.

Bullion was bought at VND27,53 million and sold at VND27.61 million at most gold shops.

Domestic gold prices were around VND140,000-VND190,000 a tael lower than global prices.

The US dollar exchange rate fell below VND19,000 per dollar on free market. In Hanoi, a dollar was purchased at VND18,970 and sold at VND18,990 as of 10:30 am local time.

State-owned Vietcombank continued to fix their dollar exchange rate at VND18,690 for buying and VND19,010 for selling.

On global market, the precious metal lost nearly 2.6 percent as most investors sold heavily to lock in gains.

The market recorded the steepest decline of spot gold in the past three months on the New York Mercantile Exchange. The metal sank to $1,192.4 an ounce, eroding $31.6 an ounce, or 2.6 percent.

A stronger greenback also contributed to the sharp decrease of bullion in this trading session. The euro exchange rate against the US dollar escaped from a four-year nadir. However, it remained low amid speculation over the escalating European debt crisis. The rate currently stands at $1.24 per euro.

Holdings at SPDR Gold Trust, the world’s biggest exchange-traded fund backed by bullion, increased by 3 metric tons to 1,220.2 metric tons.

Crude oil futures for June delivery climbed 0.7 percent, or $0.46 a barrel, to $69.87 a barrel.

This morning, crude oil recovered to rise above $70 a barrel.

Compiled by Phong Linh

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