Gold drops to three-week low

March 11, 2011 | 16:00

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The price of gold in Vietnam plunged by VND300,000 a tael (1.2 ounces) over the previous day on March 11 as global price tumbled due to the euro’s debasement.

Sacombank Jewelry Company bought the metal at VND37 million and sold at VND37.15 million as of 9:30 am local time, the lowest level since February 18.

Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND37.03 million and sold at VND37.15 million at the same time.

The precious metal has declined VND700,000 a tael this week, influenced by losing momentum of global price and the situation of frozen US dollar trade on black market.

At some commercial banks, dollar exchange rate was quoted at VND20,870 per dollar for buying and VND20,875 for selling, a decrease of VND5 per dollar.

Internationally, gold dropped as a strengthened US dollar eroded the demand for the metal as an alternative asset.

Gold for immediate delivery fell as much as $20 an ounce, or 1.4 percent, to close at $1,412 an ounce on the Comex in New York. Earlier, the metal sank to $1,402 an ounce, the lowest level in the past two weeks.

In Asia, spot gold surged nearly $6 an ounce to trade at $1,418 an ounce at 10 am Vietnamese time.

The euro exchange rate against the US dollar was at above $1.38 a euro in Tokyo this morning.

The shared currency depreciated on rising concerns over the European sovereign-debt crisis after Moody’s Investors Service cut Spain’s debt rating to Aa2 from Aa1.

Crude oil futures for April delivery traded above $102.83 a barrel on New York Mercantile Exchange.

SGGP

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