Gold unexpectedly sinks

The price of gold in Vietnam dropped by VND100,000 a tael (1.2 ounces) on July 1 as global price continuously declined due to weak buying demand.

Most gold shops bought the metal at VND37.6 million and sold at nearly VND37.7 million. Yesterday, the metal stood above VND37.8 million.

Sacombank Jewelry Company bought gold at VND37.65 million and sold at VND37.69 million as of 10 am local time.

Saigon Jewelry Company, the biggest gold shop in Vietnam, purchased the metal at VND37.64 million and sold at VND37.7 million.

Phu Quy Jewelry Company bought SJC-brand gold at VND37.62 million and sold at VND37.69 million.

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

The US dollar exchange rate against the Vietnamese dong declined the fourth day at commercial banks. State-owned Vietcombank reduced the rate by VND10 per dollar to VND20,540 for buying and VND20,610 for selling.

The interbank exchange rate remained at VND20,618 per dollar.

Internationally, gold retreated as Greek lawmakers backed a bill to authorize an austerity plan required to keep rescue aid flowing, curbing the demand for the metal as a protection of wealth.

Gold for immediate delivery fell as much as US$11.5 an ounce over the previous trading session, or 0.8 percent, to close at $1,501.3 an ounce on the Comex in New York.

In Asia, the metal mainly maintained losing momentum in the trading session this morning, fluctuating around $1,500 an ounce. Spot gold was traded at just above $1,501 an ounce as of 10 am Vietnamese time.

Yesterday, the US Federal Reserve concluded the $600-billion quantitative easing package. This program played an important role in raising the prices of essential goods, including gold and crude oil since the end of last year.

This week, SPDR Gold Trust, the largest exchange traded fund backed by bullion, sold 0.9 metric tons, reducing its holdings to 1,208.2 metric tons, the company’s website showed.

The euro exchange rate against the US dollar rose to nearly $1.45 a euro in Tokyo this morning, from $1.44 a euro the previous day.

Crude oil futures for August delivery gained as much as $0.65 a barrel to close at $95.42 a barrel on the New York Mercantile Exchange.

This morning, crude oil slid $0.64 a barrel to trade at $94.78 a barrel as of 10:30 am Vietnamese time.

By Phong Linh

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