Vietnam: Gold continues sliding

by **ADMIN** Mon Jun 27, 2011 7:40 am

Monday ,Jun 27,2011, Posted at: 15:14(GMT+7)

Gold continues sliding
The price of gold in Vietnam slid by VND10,000-20,000 a tael on June 27 as global price prolonged losing momentum in Asian market this morning.

Most gold shops purchased the metal at above VND37.6 million and sold at nearly VND37.7 million, the lowest level in the past two weeks.

Sacombank Jewelry Company bought the metal at VND37.61 million and sold at VND37.67 million as of 8:30 am local time.

Meanwhile, the Hanoi-based Phu Quy Jewelry bought SJC-brand gold at VND37.6 million and sold at VND37.69 million at the same time.

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

The dollar exchange rate against the Vietnamese dong at commercial banks rebounded again this morning. State-owned Vietcombank bought the greenback at VND20,580 and sold at VND20,680, an increase of VND70 per dollar over last weekend.

Internationally, after slumping 2.6 percent last week, the metal continued declining in Asia this morning as a stronger US dollar eroded the appeal of the metal as an alternative asset.

Spot gold fell as much as $2.6 an ounce over the closing price in New York to trade at $1,500.7 an ounce as of 8:50 am Vietnamese time.

Gold was still playing well its role as a high-safety investment channel as the sovereign-debt crisis in Greece remained unsolved. In addition, the uncertainty of the US economy and the end of the quantitative easing package this week still urge investors to buy the metal.

European Union leaders vowed to help stave off a Greek default as long as Prime Minister George Papandreou pushes through a package of budget cuts this week. European finance chiefs will decide on July 3 whether Greece has met the conditions for its next aid. Greek lawmakers are expected to start a three-day debate today and vote on the austerity measures on June 29.

The euro exchange rate against the greenback was at above $1.41 a euro in Tokyo this morning.

Crude oil futures for August settlement were traded at $90.6 a barrel as of 9 am Vietnamese time.

http://www.saigon-gpdaily.com.vn/Business/2011/6/93965/