|
Gold retreats over concerns on new regulations
The price of gold in Vietnam sank to near VND32.9 million a tael (1.2 ounces) on speculation that the State Bank of Vietnam would tighten gold borrowing and lending activities.
Saigon Jewelry Company, Vietnam’s biggest gold shop, bought the metal at VND32.87 million and sold at VND32.92 million, a decrease of VND70,000 a tael over the previous day.
Sacombank Jewelry Company fixed the prices at VND32.89 million for buying and VND32.92 million for selling.
Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND32.88 million and sold at VND32.95 million.
Bao Tin Minh Chau bought gold at VND32.86 million and sold at VND32.95 million.
Yesterday, the precious metal was not able to break through the VND33-million level though global prices jumped by nearly $20 an ounce.
Domestically, gold fetched VND300,000 a tael higher than global prices.
Explaining the domestic gold price’s fatigue, a jeweler revealed that information that the central bank is going to promulgate new regulations on gold borrowing activity and gold savings usage at commercial banks had strongly affected the market. The new regulations are expected to tighten gold borrowing and lending activities, as well as not allow commercial banks to change borrowed gold into Vietnamese dong for lending.
According to gold traders, this information had urged many banks to sell gold, causing a sudden increase in supply while the demand for the metal was poor.
Internationally, gold advanced as speculation that the US Federal Reserve would take quantitative easing sapped the greenback’s strength, spurring the demand for the precious metal as a store of value.
Gold for immediate delivery rose as much as $12.6 an ounce, or 1 percent, to close at $1,341.3 an ounce on the Comex in New York. Earlier, the metal sometimes surged to near $1,350 an ounce in London.
In Asia, gold fluctuated around $1,342-1,344 an ounce this morning.
A report by Goldman Sachs Bank said that Fed would have to spend $4 trillion to meet its goal on economic growth and inflation.
The dollar exchange rate against the euro stood near $1.4 this morning, almost unchanged as of yesterday.
Dollars were bought at VND20,120, down VND40 per dollar, and sold at VND20,170, VND10 per dollar lower than the previous day, on free market in Hanoi.
Crude oil futures for December settlement gained $0.83 a barrel to close at $82.52 a barrel on the New York Mercantile Exchange.
This morning, crude oil slightly fell to just above $82 a barrel.
Thuy Doan
sggp
|
