Vietnam gold continued dropping to the lowest level since 2012 at VND41.02 million/tael on Wednesday morning following world gold prices.
SJC Hanoi quoted at VND40.80 million/tael for bid and VND41.02 million/tael for ask, respectively as of 9:02 am, Hanoi time.
Sacombank-gold was listed at VND40.80-VND40.93 million/tael for bid and ask, respectively
Rong Thang Long gold, a product of Bao Tin Minh Chau company was trading at VND40.35 million/tael and VND40.65 million/tael for bid and ask, respectively.
In the market, non-SJC were trading around VND400/tael lower than SJC gold this morning, a higher distance than yesterday.
Gold Falls both in New York and Asia Trade
The yellow metal extended loss in Asia trade this morning after falling to the 4 months and a half low in New York trade last night on lower Euros after Greece’s failure to form a coalition government heightened concerns over Europe’s financial crisis.
In New York trade last night, spot gold continued falling by 0.88 percent an ounce to settle at $1,542.60, posting its largest loss since December 29, 2011. US gold futures settled down $18.60 an ounce to $1,542.50/ounce.
At Kitco floor this morning, spot gold was quoted at $1,541.30-1,542.30/troy ounce for bid and ask, respectively as of 9:02 am, Hanoi time.
Gold has tumbled by nearly 7 percent in May.
The yellow metal dropped inline with weaker Euros after Greece abandoned efforts to form a government and called a new election. Market participants spooked that Greece will get closer to bankruptcy and out of the euro zone.
However, the good news is that Indian buyers- the worlds’ largest consumers have back into the market due to price decline that may protect the bullion price from a more protracted decline.
Local Dollar Stable
Vietnam’s central bank kept dollar midpoint rate to VND20,828 today, stable for more nearly 5 months.
Commercial banks are allowed to apply effective exchange rate +-1 percent from the official exchange rate set by the central bank, accordingly, the ceiling price for a dollar today was VND21,036 but commercial banks mostly quoted dollar prices below the upper limit.
Commercial banks kept the dollar prices unchanged for 4 days, ranging from VND20,810-20,830 for bid and VND20,870 for ask, respectively.