Gold sharply drops; dollar exceeds VND21,600

The price of gold in Vietnam dropped by VND800,000 a tael (1.2 ounces) over the previous day on October 5 as global price slumped 2.2 percent in the trading session last night in New York.

Sacombank Jewelry Company bought gold at VND44.46 million and sold at VND44.74 million at 11:10 am local time.

Saigon Jewelry Company, the largest processor and gold trader in Vietnam, collected gold at VND44.35 million and sold at VND44.65 million in Ho Chi Minh City. In Hanoi, the company bought gold at VND44.35 million and sold at VND44.67 million.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND44.5 million and sold at VND44.85 million at the same time.

Domestically, gold fetched around VND3.7 million a tael higher than global price.

According to gold traders, buying demand has strongly rose recently. People and institutions increased buying gold, causing pressure on supply.

On foreign currency market, the dollar exchange rate skyrocketed this morning. Dollars were bought at VND21,580 and sold at VND21,650 on free market in Ho Chi Minh City. In Hanoi, the greenback was bought at VND21,520 and sold at VND21,620 at 11 am local time.

Meanwhile, the interbank exchange rate changed the first time in the last 35 days, rising to VND20,638 per dollar. Thus, Vietcombank bought dollars at VND20,840 and sold at VND20,844. Eximbank purchased the US currency at VND20,820 and sold at VND20,844.

Internationally, gold slumped after European leaders said that they would protect their banks and the US Federal Reserve chairman Ben Bernanke also said Fed will be ready to stimulate economic growth in a testimony to Congress, eroding demand for the precious metal as a haven.

Gold for immediate delivery fell as much as $36.7 an ounce to close at $1,625.2 an ounce on the Comex in New York.

In Asia, spot gold rose by $3 an ounce over the closing price in New York to trade at VND1,628.9 at 11 am Vietnamese time.

The euro exchange rate against the greenback stood around $1.33 a euro in Tokyo this morning.

Crude oil futures gained by $2.18 a barrel over the closing price the previous day to trade at $77.85 a barrel at 11:10 am Vietnamese time.

By Thuy Doan

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