Vietnam gold price down by VND200,000 per tael

Simultaneously, the inter-bank dollar reference rate continued to drop further by VND5 from Wednesday.

As of 10:20 am local time in Hanoi, Thang Long gold bullion of Bao Tin Minh Chau and Saigon Jewelry Co (SJC) gold of Phu Quy was listed the same price at VND37.360 million per tael (bought) and at VND37.47 million per tael (sold).

Earlier, as of 9:00 am local time, SBJ gold was bought at VND37.4 million per tael and sold at VND37.47 million per tael by Sacombank, while SJC gold was traded at VND37.38 and VND37.48 million per tael respectively for bid and ask.

The sharp decline in price in domestic market is reported as global spot gold price fell last night by 1 per cent because investors rushed to taking profit. In Asia trade this morning, gold price fluctuation was very unpredictable.

World spot gold price at 10:25 am (Vietnam time) was standing at $1,505.7 per ounce and keeping upwards, according to Kitco chart.

In local money market, the US dollar exchange rate fell by VND5 from the day before to VND20,693 a dollar, dragging the exchange cap rate down to VND20,900 per US dollar. The exchange cap rate in commercial banks list at VND20,900 per US dollar, a higher of VND270 per US dollar than real transaction price.

Specifically, Vietcombank bought dollar at price of VND20,550 and sold it at VND20,630, down VND20 from yesterday. Sacombank quoted dollar prices at VND 20,510 – VND20,630, respectively for buying and selling, also down by VND20 compare to day ago. Eximbank quoted dollar prices at VND20,520 for bid and VND 20,640 for offer.

Gold fell in New York as a stronger dollar eroded the appeal of the precious metal as an alternative asset. Silver and crude oil also declined on speculation that European leaders may not grant Greece additional aid.

Gold futures for June delivery fell $15.50, or 1 per cent, to settle at $1,501.40 on the Comex in New York. The metal has gained 23 per cent in the past year.

Silver futures for July delivery fell $2.971, or 7.7 per cent, to $35.515 an ounce on the Comex. The metal gained 9.1 per cent in the previous two days after shedding 27 per cent last week.

Oil for June delivery on the New York Mercantile Exchange fell as much as $5,67, or 5,5 per cent, to $98.21 a barrel.