Gold falls VND300,000 per tael

>> Gold seesaws ahead of ECB, EU summit

Sacombank Jewelry Company bought gold at VND44.58 million and sold at VND44.78 million as of 11:25am Vietnamese time.

Saigon Jewelry Company, the biggest gold processing and trading company in Vietnam, collected gold at VND44.53 million and sold at VND44.78 million around 11:10am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND44.65 million and sold at VND44.83 million at 11:22am Vietnamese time.

Bao Tin Minh Chau Jewelry Company quoted the price at VND43.8 million for buying, and VND44 million for selling at 11:45am Vietnamese time.

Domestically, SJC-brand gold fetched VND1 million a tael, higher than global price.

On the black market, one dollar was bought at VND21,130 and sold at VND21,180, an increase of VND20 per dollar in selling price over the previous day.

Internationally, gold declined as investors were disappointed after ECB dashed expectations of more aggressive bond purchases on the eve of a key EU summit, though it reduced its interest rates by 25 basic points to 1 per cent, introduced ultra-long euro liquidity loans, and widened the collateral base in a bid to ease the strain in money markets.

Gold for immediate delivery fell as much as $37.3 an ounce to close at $1,706.8 an ounce on the Comex in New York.

In Asia, the metal recovered on bottom fishing this morning. Spot gold regained $8.4an ounce to trade at $1,715.2 an ounce at 10am Vietnamese time.

Today, investors are watching the progress of a crucial European Union summit with dwindling confidence that it would produce a cure for the two-year-old debt crisis. In addition, China’s economic data on inflation rate, industrial output, and retail sales also attract investors’ attention.

The euro exchange rate against the US dollar was just above $1.33 a euro in Tokyo this morning.