Gold, dollar climbs steeply

Price of gold in Vietnam surpassed VND42.4 million a tael (1.2 ounces) on June 6 as global price advanced strongly on hopes that the European Central Bank meeting later in the day would yield action to contain the eurozone debt crisis.

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Saigon Jewellery Company, Vietnam’s biggest gold processer and trader, bought the metal at VND42.22 million and sold at VND42.42 million as of 11.15am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND42.31 million and sold at VND42.44 million as of 12.50pm Vietnamese time.

Bao Tin Minh Chau Jewellery Company quoted price at VND41.3 million for buying, and at VND41.6 million for selling at 12.50pm Vietnamese time.

Domestically, gold fetched VND1.1 million a tael, higher than global price.

On free market, dollar continued to climb sharply. The greenback was bought at VND21,020 per dollar, and sold at VND21,050 per dollar, up VND60 per dollar from the previous day.

Meanwhile, the dollar exchange rate also exceeded VND21,000 per dollar at commercial banks.

Vietcombank bought the greenback at VND20,966 per dollar, and sold at VND21,036 per dollar.

Eximbank quoted the rate at VND20,950 for buying, and VND21,036 for selling.

Internationally, gold rose in tandem with the Euro and risky assets, ahead of a European Central Bank policy meeting as investors’ awaited action from policymakers to soothe the debt crisis.

In Asia, spot gold surged by nearly $10 an ounce to trade at $1,628 an ounce at 11.30am Vietnamese time.

Gold for immediate delivery dropped as much as $1.4 an ounce to close at $1,617.9 an ounce in New York last night after a Group of Seven emergency conference call failed to produce any concrete solution.

Gold has held steady above $1,600 an ounce since it rallied 4.3 percent last Friday, as investors expect further monetary easing from the central banks, especially the US Federal Reserve, after data showed a surprisingly weak job market.

However, the metal might resume losing trend if the European sovereign-debt worsens. Yesterday, Moody’s Investor Services downgraded credit ratings of several banks in Germany, the single currency bloc’s strongest economy, citing a greater risk of further shocks from the region’s debt turmoil.

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

Crude oil futures for July delivery rallied $0.66 a barrel to trade at $84.95 a barrel at 11.45am Vietnamese time.

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