Gold fluctuates around VND39 million

The price of gold in Vietnam hovered around VND39 million a tael (1.2 ounces) on July 15 as global price rose to record for the second day.

Sacombank Jewelry Company bought the metal at VND38.89 million and sold at VND39.01 million as of 9 am local time.

Saigon Jewelry Company purchased gold at VND38.92 million and sold at VND38.98 million at the same time.

Hanoi-based Phu Quy Jewelry Company bought SJC-brand gold at VND38.88 million and sold at VND38.97 million.

Yesterday, the metal hit an all-time high at nearly VND39.1 million in the morning. Profit-taking pressure sent the price to below VND39 million in the afternoon.

Domestically, gold fetched VND450,000 lower than global price.

State-owned Vietcombank reduced its selling price by VND10 per dollar to trade at VND21,600 and kept buying price at VND21,550. The interbank exchange rate stalled at VND20,608 per dollar.

Internationally, gold poised for second weekly gain after climbing to a record as concerns over the wrangling in the US Federal debt ceiling and the European debt crisis boosted haven demand.

Gold for immediate delivery rose as much as $4.4 an ounce, or 0.3 percent, to close at $1,588 an ounce on the Comex in New York. Earlier, the metal topped a lifetime high of $1,594.45 an ounce.

Gold dropped after the US Federal Reserve chairman said that the Fed is prepared to take additional action if the economy appears to be in danger of stalling. The Treasury Department said that the government will exceed its borrowing authority if the Congress fails to raise debt ceiling to $14.3 trillion on August 2.

Meanwhile, Italy’s borrowing costs climbed to the highest level in three years.

In Asia, gold pared gains as high prices prompted investors to sell the metal to book profits. Spot gold cut $3.2 an ounce over the closing price in New York to trade at $1,584.8 an ounce as of 9:20 am Vietnamese time.

SPDR Gold Trust, the largest exchange traded fund backed by bullion, maintained its holdings at 1,225.4 metric tons, the company’s website showed.

The euro exchange rate against the US dollar was at nearly $1.42 a euro in Tokyo this morning.

Crude oil futures for August delivery lost $1.73 a barrel to close at $95.69 a barrel on the New York Mercantile Exchange.

This morning, crude oil recovered $0.52 a barrel to trade at $96.21 a barrel as of 9:35 am Vietnamese time.

By Cat Tuong

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