Gold faintly drops

An increase of US$10 an ounce in global price failed to push the price of gold in Vietnam to surpass VND37.65 million a tael (1.2 ounces) on July 5.

Sacombank Jewelry Company bought gold at VND37.58 million and sold at VND37.62 million as of 10:15 am local time.

Phu Quy Jewelry Company purchased SJC-brand gold at VND37.55 million and sold at VND37.63 million.

Local gold price has lingered around VND37.65 million since last weekend. The metal fell by VND10,000-20,000 a tael over the previous day.

Domestically, gold fetched VND400,000 a tael higher than global price.

The US dollar exchange rate against the Vietnamese dong climbed at commercial banks. State-owned Vietcombank bought the greenback at VND20,560, and sold at VND20,630, an increase of VND10 per dollar over the previous day.

Bank for Investment and Development of Vietnam quoted the rate at VND20,540 for buying and VND20,620 for selling.

The interbank exchange rate was at VND20,613 per dollar.

Internationally, gold managed to advance although US markets closed for Independence Day.

Gold for immediate delivery climbed as much as US$9.8 an ounce over the previous trading session, or 0.7 percent, to close at $1,497.3 an ounce on the Kitco trading floor.

In Asia, the metal maintained a slight rising momentum in the trading session this morning. Spot gold was traded at $1,498.1 an ounce, up by $0.8 an ounce, as of 10:40 am Vietnamese time.

Gold was backed by a weakening US dollar against the euro. The shared currency rallied after Greece temporarily avoided a default.

In the meeting this week, the European Central Bank is expected to raise its benchmark interest rate to 1.5 percent from 1.25 percent.

The euro exchange rate against the US dollar rose to nearly $1.45 a euro in Tokyo this morning.

Crude oil futures for August delivery stood near $94.8 a barrel on the New York Mercantile Exchange.

By Phu Huu

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