Gold prices sink by VND550,000 a tael in Vietnam

Sacombank Jewelry Company bought gold at VND44 million and sold at VND44.8 million around 11:45am Vietnamese time.

Saigon Jewelry Company, the biggest gold processing and trading company in Vietnam, collected gold at VND44.4 million and sold at VND44.8 million around 11:35am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND44.35 million and sold at VND44.8 million at 11:50am Vietnamese time.

Bao Tin Minh Chau Jewelry Company quoted VND43.7 million for buying, and VND44.15 million for selling at 12pm Vietnamese time.

Domestic gold fetched more than VND2 million a tael, higher than global price.

Recently some jewelers drastically lowered the price of non-SJC gold bars causing anxiety to gold buyers who feared that these kinds of bars would be banned from the market. However, the State Bank of Vietnam yesterday assured that all kinds of gold bars, that had previously been   produced and circulated in the market, would still be allowed to circulate   after the new regulations on gold trading control takes effect.

On the black market, one dollar was bought at VND21,280 and sold at VND21,340, almost unchanged from the previous day.

Internationally, gold declined as the US dollar became stronger from negative news coming out of Europe.

Gold for immediate delivery fell as much as $47.5 an ounce, or 2.8 per cent, to close at $1,678.3 an ounce on the Comex in New York.

In Asia, gold recovered $3.9 an ounce to trade at $1,682.3 an ounce at 10:45am Vietnamese time.

A US Congress budget super committee failed to reach an agreement to cut a budget deficit of $1.2 trillion in ten years. The nation is going to face credit ratings downgrade if the committee is still not successful at reaching an agreement before deadline of November 23.

Moody’s Investors Service yesterday warned France, Europe’s second largest economy, of its credit ratings outlook.

The euro exchange rate against the US dollar stood below $1.35 a euro in Tokyo this morning.

Crude oil prices for December slid $1.19 a barrel to trade at $97.45 a barrel at 11:05am Vietnamese time.