Gold drops sharply 2012

Price of gold in Vietnam retreated to VND43.5 million a tael (1.2 ounces) on March 21 as global price slid on a stronger US dollar.

Sacombank Jewellery Company bought gold at VND43.38 million and sold at VND43.58 million as of 9.30am Vietnamese time.

Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, collected the metal at VND43.38 million and sold at VND43.58 million as of 10.33am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND43.43 million and sold at VND44.57 million as of 10.30am Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND42.45 million for buying, and at VND42.7 million for selling at 12.05pm Vietnamese time.

The precious metal has showed losing tendency since the beginning of this month, losing around VND1.7 million per tael from end February.

Yesterday, buying demand took the upper hand on bullion market. However, trading volume at some big jewellers even dropped over the previous day. Saigon Jewellery Company said its trading volume fell over March 19 as it sold 3,800 taels of gold, and bought 1,300 taels yesterday.

Domestically, gold fetched around VND2 million a tael, higher than global price.

On free market, dollars were bought at VND20,820 per dollar, and sold at VND20,840 per dollar, up VND10 per dollar in selling price over the previous day.

Meanwhile, Vietcombank purchased the greenback at VND20,820 per dollar, and sold at VND20,880 per dollar, an increase of VND10 per dollar from the previous day.

Internationally, gold rebounded in the trading session in Asia this morning after declining nearly 0.8 per cent in the trading session in New York last night due to a strengthened US dollar and a drop in oil price.

Concerns on a slowdown in China’s economic growth dragged oil price down, weighing on bullion. Crude oil also dropped on news that Saudi Arabia plans to pump more oil to meet any supply shortage caused by the Iran crisis.  

Moreover, US encouraging economic data strengthened dollar, sapping the appeal of the precious metal against equities.

Gold for immediate delivery fell as much as $12.7 an ounce to close at $1,651.8 an ounce on the Kitco trading floor.

In Asia, spot gold recovered $2.8 an ounce to trade at $1,654.6 an ounce at 10.30am Vietnamese time.

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

Crude oil futures for April delivery traded at $105.61 a barrel on the New York Mercantile Exchange at 10.30am Vietnamese time.

SPDR Gold Trust, the largest exchange traded fund backed by bullion, sold 3.1 metric tonnes of gold, reducing its holdings to 1,290.2 metric tonnes, as per company website