Gold makes sharp correction

March 29, 2011 | 21:28

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The price of gold in Vietnam sharply dropped on March 29 as global price sank to the lowest level since March 18 due to profit-taking.

Sacombank Jewelry Company bought the metal at VND36.62 million and sold at VND36.72 million as of 8:25 am local time.

Saigon Jewelry Company, the biggest gold shop in Vietnam, purchased gold at VND36.61 million and sold at VND36.73 million at the same time.

Meanwhile, Hanoi-based Phu Quy Jewelry bought SJC-brand gold at VND36.57 million and sold at VND36.7 million as of 8:40 am local time.

Domestically, gold declined by nearly VND300,000 a tael over the previous day as demand severely fell.

Internationally, gold retreated as a stronger US dollar sapped investor demand for the metal as an alternative asset.

Gold futures for April delivery lost as much as $6.3 an ounce, or 0.4 per cent, to close at $1,419.9 an ounce on the Comex in New York, the lowest level in the past week.

In Asia, the metal fluctuated in a wide range this morning. Gold for immediate delivery sometime sank to $1,410 an ounce. The metal was traded at $1,417 an ounce at 8:40 am Vietnamese time.

The US Dollar Index, which tracks the greenback’s strength against a basket of six major currencies, rose in the trading session last night. The euro exchange rate against the greenback fell to $1.4078 from $1.4087.

Crude oil also sank to the lowest level in a week. Crude oil futures for May settlement slid 1.4 per cent to close at $103.98 a barrel. May-delivery Brent crude oil decreased to $114.8 a barrel.

On the foreign exchange market, the US dollars fell VND5 per dollar over the previous day. State-owned Vietcombank bought the greenback at VND20,890, and sold at VND20,895.

SGGP

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