VIETNAM - Drastic fall in gold

by lexie Thu Dec 15, 2011 5:47 pm

December 15, 2011

Drastic fall in gold

Price of gold in Vietnam fell by VND600,000 a tael (1.2 ounces) over the previous day on December 15 as global price tumbled 3.3 percent in the trading session in New York last night.

Sacombank Jewelry Company bought gold at VND42.9 million and sold at VND43.3 million as of 10:25am Vietnamese time.

Saigon Jewelry Company, the biggest gold processing and trading company in Vietnam, collected gold at VND42.85 million and sold at VND43.25 million as of 11:07am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND42.95 million and sold at VND43.35 million at 12:46pm Vietnamese time.

Meanwhile, Bao Tin Minh Chau Jewelry Company quoted the price at VND41.95 million for buying, and VND42.4 million for selling at 1:10pm Vietnamese time.

Domestically, SJC-brand gold fetched VND3 million a tael, higher than global price.

Jewelers said trading was rather slow at the beginning of the day. However, they expected that trading volume would jump today as the heavy metal continued to decline further.

Yesterday, the State Bank of Vietnam unexpectedly raised the interbank exchange rate to VND20,813 per dollar after pinning it at VND20,803 for 40 days. Vietcombank bought the greenback at VND21,015, and sold at VND21,021 per dollar this morning.

On black market, the US dollar escalated. One dollar was bought at VND21,250, and sold at VND21,300, an increase of VND50 per dollar in buying price, and VND60 per dollar in selling price over the previous day.

Internationally, gold made a freefall as a technical sell-off, year-end fund liquidation and plunging commodities fueled bullion's second-biggest decline since the 2008 economic crisis. In addition, investors remained nervous about the euro zone debt crisis. Fears grew that the region’s debt crisis was spinning out of control after Italy’s borrowing costs hit a new high in the eurozone.

Gold for immediate delivery fell as much as $54.4 an ounce, or 3.3 percent, to close at $1,577.5 an ounce on the Comex in New York, the lowest closing price in the past three months. Earlier, bullion plunged to $1,562 an ounce.

In the last three trading sessions, gold lost by nearly $135 an ounce, or 7.9 percent.

In Asia, the precious metal maintained losing momentum at a slower pace. Spot gold was traded at $1,574.8 an ounce, down $2.7 an ounce at 9am Vietnamese time.

The euro exchange rate against the US dollar sank to below $1.3 a euro, a 11-month low, in Tokyo this morning.

http://www.vietfinancenews.com/2011/12/drastic-fall-in-gold.html#more