The State Bank of Vietnam announced yesterday that it would allow 10 companies to import gold, causing domestic gold prices to drop to VND32.8 million from a record high of VND33.2 million.
The precious metal opened day at VND32.2 million a tael, down VND600,000 over the previous day. However, it surged to VND32.6 million just two hours later.
In Hanoi, Phu Quy Jewelry set the price of SJC-brand gold at VND32.35 million for buying, and VND32.6 million for selling as of 9:45 am local time.
In Ho Chi Minh City, SJC-brand gold was bought at VND32.45 million and sold at VND32.53 million as of 10 am.
At the same time, Sacombank Jewlery purchased gold at VND32.44 million and sold at VND32.59 million.
According to gold traders, a stronger buying demand to cut losses had reversed gold prices. Trading on bullion market had improved since 9:30 am this morning.
Last evening, selling demand took the upper hand on concerns that gold would be imported in a large amount. However, investors shifted to buying after jewelers said that the central bank just allowed them to import a few hundred kilograms of gold.
On free market, the dollar exchange rate continued to escalate. Dollars were collected at VND19,850, a rise of VND10 per dollar, and sold at VND19,900, VND20 per dollar higher than previous day.
Globally, bullion made a sharp correction as the US dollar strengthened, eroding the appeal of the metal as a store of value.
Gold for immediate delivery retreated US$15.5 an ounce, or 1.2 percent, to close at $1,334.6 on the Comex in New York.
Earlier, the yellow metal hit an all-time high of $1,365 an ounce in London.
In Asia, bullion was trading at $1,333 an ounce as of 9:30 am Vietnamese time.
The greenback recovered after the US Department of Labor announced that initial jobless claims for the week ended October 2 unexpectedly fell by 11,000 to 445,000, much lower than a forecast of 455,000.
The euro exchange rate stood at $1.39 a euro this morning from $1.4 the previous day.
SPDR Gold Trust, the largest exchange-traded fund backed by bullion, suddenly dumped 13.4 metric tons, accounting for 1 percent of its total holdings, marking the heaviest sale since April last year. Its current holdings stayed at 1,288.5 metric tons.
Crude oil futures for November settlement lost 1.9 percent, or $1.56 a barrel, to close at $81.67 a barrel.
This morning, crude oil hovered above $81.6 a barrel.
