Bullion plunges sharply

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

Saigon Jewelry Company, the biggest gold processor and trader in Vietnam, collected gold at VND42.95 million and sold at VND43.25 million as of 10am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND43 million and sold at VND43.25 million as of 10:14am Vietnamese time.

Meanwhile, Bao Tin Minh Chau Jewelry Company quoted the price at VND42 million for buying, and VND42.25 million for selling at 1pm Vietnamese time.

According to gold traders, a steep drop in gold price might boost trading on bullion market. In the past few days, trading was muted as the price changed slightly. Sacombank Jewelry Company traded only 650 taels of gold last Saturday.

On free market, the dollar exchange rate inched slightly up over last weekend this morning. In Hanoi, dollars were bought at VND21,220 per dollar, and sold at VND21,250 per dollar, an increase of VND10 per dollar over last Saturday.

Internationally, gold retreated as momentum that pushed prices up 3 per cent last week fizzled as the dollar strengthened with growing worries about the eurozone sovereign-debt crisis.

In Asia, gold for immediate delivery fell as much as $10 an ounce to trade at $1,608 an ounce at 10:25 am Vietnamese time.

The euro exchange rate against the US dollar sank to below $1.27 a euro in Tokyo this morning.

The eurozone will kick off a busy week with a meeting between German chancellor and French president to find a solution for the region’s debt crisis. Investors will also closely watch debt auctions later this week by Spain and Italy.