Gold hits new high

The price of gold in Vietnam set new record of nearly VND31.6 million a tael (1.2 ounces) on October 4 though global price made a slight correction.

Most gold shops bought the metal at VND31.5 million and sold at VND31.55 million, an increase of VND50,000 a tael over the last weekend.

In Hanoi, Phu Quy Jewelry Co. purchased SJC-brand gold of the Saigon Jewelry Co. at VND31.5 million and sold at VND31.57 million as of 9 am local time.

At the same time, Sacombank Jewelry Co. fixed the price at VND31.52 million for buying and VND31.56 million for selling.

Domestically, gold fetched VND200,000 a tael higher than global prices.

Trading on bullion market was muted as gold shops remained poorly patronized.

The US dollar selling price on free market rose by VND20 per dollar to stand at VND19,650 while buying price climbed to VND19,620 per dollar.

Meanwhile, commercial banks also raised the greenback’s purchasing price. State-owned Vietcombank and Eximbank collected dollars at VND19,490, and VND19,480 respectively.

Internationally, the precious metal shrank as rally to records prompted investors to sell the metal to book profits.

Gold for immediate delivery shed $2.8 an ounce over the closing price in New York to trade at $1,316.9 an ounce as of 9:15 am Vietnamese time.

Holdings at SPDR Gold Trust reduced by 2.5 metric tons to 1,302.3 metric tons on October 1, the company’s website showed. However, the metal still hit an all-time high of US$1,322 an ounce despite this movement of the world’s largest exchange-traded fund.

The euro exchange rate against the greenback stood at $1.38 a euro, almost unchanged as of last weekend.

A weakening dollar continued to be the key factor that backed gold prices. It lost 2 percent last week, while gold gained 1.7 percent.

Debasement pressure on the greenback increased due to the US sluggish economic recovery. Last week, two Federal Reserve officials said that the country would probably need to take action to spur the recovery and avert deflation.

Crude oil fluctuated around $81.6 a barrel this morning.

Tags: vietnam gold, Vietnam gold market, Vietnam gold prices