Gold worn out; dollar plummets

Sacombank Jewelry Company bought gold at VND43.1 million and sold at VND43.4 million as of 8:40am Vietnamese time.

Saigon Jewelry Company, the biggest gold processor and trader in Vietnam, collected gold at VND43.12 million and sold at VND43.42 million as of 8:50am Vietnamese time.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND43.15 million and sold at VND43.45 million as of 8:30am Vietnamese time.

Meanwhile, Bao Tin Minh Chau Jewelry Company quoted the price at VND42.15 million for buying, and VND42.45 million for selling at 12:45pm Vietnamese time.

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

A gloomy bullion market showed signs that domestic gold price was worn-out against global price. Yesterday, local price stalled although global price accelerated on international market.

On free market, the dollar exchange rate continued to retreat this morning. In Hanoi, dollars were bought at VND21,110 per dollar, and sold at VND21,150 per dollar, a decrease of VND70 per dollar in buying price, and VND70 per dollar in selling price over the previous day. The greenback lost VND100 per dollar over last Monday, whereas, bank dollars stood still.

Internationally, gold unexpectedly jumped, breaching above the key 200-day moving average after renewed optimism on the global economy spurred demand for the precious metal as a high-risk asset.

Return to above the 200-day moving average may help gold resume its bull run, analysts have said.

Gold for immediate delivery gained as much as $21.2 an ounce, or 1.3 percent, to close at $1,633.2 an ounce on the Comex in New York.

Yesterday, Fitch Ratings said that it does not expect to cut France's triple-A credit rating this year, while countries under review such as Italy or Spain could be downgraded by one or two notches.

In Asia, gold for immediate delivery rose $2.3 an ounce to trade at $1,635.5 an ounce at 9:15 am Vietnamese time.

The euro exchange rate against the US dollar stood nearly $1.28 a euro in Tokyo this morning, almost unchanged as of the previous day.