Gold slumps VND700,000 per tael

Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, bought the metal at VND41.4 million and sold at VND41.7 million as of 10.50am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND41.5 million and sold at VND41.7 million as of 11.20am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND40.45 million for buying, and at VND40.75 million for selling at 11.40am Vietnamese time.

Domestically, gold fetched VND1.7 million a tael, higher than global price.

On free market, the US dollar was bought at VND20,980 per dollar, and sold at VND21,010 per dollar, down VND20 per dollar from the previous day.

Meanwhile, the rate also remained above VND21,000 per dollar at commercial banks. Vietcombank bought the greenback at VND20,950 per dollar, and sold at VND21,036 per dollar. Eximbank quoted the rate at VND20,940 for buying, and VND21,025 for selling.

Internationally, gold lost US$1,600 an ounce due to a disappointing testimony of the US Federal Reserve chairman Ben Bernanke in front of Congress. During his testimony, Ben Bernanke did not signal further monetary easing to stimulate economic growth but confirmed that Fed would take action if the economy and financial market worsens.

China unexpectedly lowered its benchmark interest rate for the first time in three years yesterday. This movement lifted up the heavy metal but the metal dropped drastically later under disappointing news from the US.

In addition, Fitch Ratings downgraded Spain’s credit rating by three notches. Observers forecast that Spain may soon seek European Union help for its banks. Meanwhile, Chancellor Angela Merkel said Europe was ready to act to ensure stability in the eurozone.

In Asia, spot gold gained $7.9 an ounce to trade at $1,581.6 an ounce at 10.15am Vietnamese time.

Gold for immediate delivery rose as much as $31.3 an ounce, or 1.9 per cent, to close at $1,589.5 an ounce in New York.

Euro exchange rate against the US dollar stood above $1.25 a Euro in Tokyo this morning.

Crude oil futures for July delivery slipped $1.73 a barrel to trade at $83.09 a barrel at 10.30am Vietnamese time.