Gold plummets after Fed meeting

Saigon Jewelry Company, Vietnam’s biggest gold processer and trader, bought the metal at VND41.77 million and sold at VND41.92 million as of 11.10am Vietnamese time.

Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND41.85 million and sold at VND41.93 million at the same time.

Bao Tin Minh Chau Jewelry Company quoted price at VND40.35 million for buying, and at VND40.65 million for selling at 12.30pm Vietnamese time.

Domestically, gold fetched VND1.6 million a tael higher than global price.

On free market, the US dollar was bought at VND20,860 per dollar, and sold at VND20,880 per dollar, unchanged over the previous day.

Meanwhile, Vietcombank quoted the rate at VND20,845 per dollar for buying, and at VND20,880 per dollar for selling, down by VND5 per dollar from the previous day.

Eximbank purchased dollars at VND20,820 per dollar, and sold at VND20,880 per dollar, a decrease of VND10 per dollar in selling price over the previous day.

Internationally, gold sank most in the past three weeks after the Fed dashed hopes of imminent stimulus measures to shore up a faltering economy and signaled more strongly that further bond buying could be in store.

Last night, gold fell $14.8 an ounce, or 0.9 percent, to close at $1,601.1 an ounce in New York.

In Asia, gold for immediate delivery recovered $2.2 an ounce to trade at $1,603.3 an ounce at 9am Vietnamese time. Sentiment was supported by news that South Korean’s central bank bought 16 tons of gold in July, raising the country’s gold holdings by nearly 30 percent to 70.4 tons.

Today, investors were watching closely the European Central Bank meeting later in the day after its chairman Mario Draghi vowed to do whatever it takes to protect the Euro last week.

Euro exchange rate against the US dollar rose to above $1.22 a Euro in Tokyo this morning.

Crude oil futures for September delivery lost $0.17 a barrel to trade at $88.74 a barrel at 9.15am Vietnamese time.