Gold jumps to record on high demand

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SaiGon GP English - 51 month(s) ago 3 readings

Gold jumps to record on high demand

The price of gold in Vietnam rose to VND29.9 million a tael (1.2 ounces) on September 17 as global price hit new record after a slight correction.

Most gold shops bought the metal at VND29.85 million and sold at VND29.9 million, up VND170,000 a tael over the previous day.

Domestically, gold fetched VND500,000 a tael lower than global prices.

Jewelers continued to keep a gap of VND50,000 between buying and selling prices to boost trading. However, bullion market remained subdued. Domestic gold supply became scarce as jewelers promoted exporting jewelries last month. Some investors said that they would not sell their holdings at this time as experts expected that the rate would keep rising.

The US dollar exchange rate against the Vietnamese dong changed little after being steady for a long time. Dollars were purchased at VND19,500 and sold at VND19,520.

State-owned Vietcombank bought the greenback at VND19,475 and sold at VND19,500.

Globally, gold hit a record high for the second time this week as strong changes in the exchange rates of major currencies and worsening economic statistics increased investors’ concern, prompting them to shift their investments to the precious metal.

After fluctuating between $1,270.4 and $1,278.3 an ounce, gold for immediate delivery rose as much as $7.3 an ounce over the previous session to close at $1,276.5 an ounce.

Gold futures for December delivery touched an all-time high of $1,279.5 an ounce, $3 an ounce higher than previous one. The contract has advanced 2.3 percent over the beginning of this week.

Data released yesterday showed a decrease in the UK’s retail sales. The US Federal Reserve reported that manufacturing in Philadelphia area shrank. Although initial jobless claims in the previous week fell, moving reversely an early forecast, these indexes have made investors anxious.

The euro exchange rate surged to $1.31 a euro this morning from $1.3 yesterday.

The US Dollar Index, a six-currency gauge of the greenback’s value, has dropped 2.3 percent this month while gold has gained 2.1 percent.

Gold also rose amid the increasing inflation. A report by the US Labor Department said that producer price index edged up 0.8 percent in August, the highest level in the past five months. Recent statistics also indicated a sharp increase in consumer price in China.

In Asia, gold was trading at nearly $1,277 an ounce as of 9:30 am Vietnamese time.

Holdings at SPDR Gold Trust, the largest exchange traded fund backed by bullion, stayed at 1,294.8 metric tons.

Crude oil futures for October settlement contracted $1.45 a barrel, or 1.9 percent, to close at $74.57 a barrel, the biggest loss since August 31. Crude oil sank as a leak on the oil pipeline linking Canada and refineries in the US Midwest was repaired.

Crude oil traded above $74.5 a barrel this morning.

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