Gold advances VND150,000 a tael

The price of gold in Vietnam surged by VND150,000 a tael (1.2 ounces) on August 13 over the previous day, as the global price strongly jumped.

Saigon Jewelry Co., the biggest gold shop in Vietnam, bought the metal at VND28.14 million and sold at VND28.18 million.

After being more expensive than global prices for nearly two months, domestic prices became cheaper, fetching VND120,000 a tael lower than global prices.

Buying demand remained weak, urging gold traders to apply a narrow gap between buying and selling prices to boost trading.

The US dollar exchange rate on free market stalled after sharply rising for two days. Dollars were bought at VND19,260 and sold at VND19,280.

At most commercial banks, the rate was still fixed at VND19,100.

Globally, the precious metal suddenly hiked 1.3 percent in New York after the US Labor Department announced that initial jobless claims rose to the highest level since mid-February.

US stock markets tumbled as investors dumped shares and shifted their investments to high-safety channels like gold and the greenback.

The metal climbed by US$15.6 an ounce, or 1.3 percent, to 1,214.5. Earlier, it touched 1,217 an ounce.

In Asia, the precious metal hovered around $1,215 an ounce this morning.

SPDR Gold Trust, the world’s largest exchange-traded fund backed by bullion, bought 3.9 metric tons, increasing its holdings to 1,286.7 metric tons, the company’s website showed. Last month, the company sold continuously amid the easing European debt crisis.

The euro exchange rate against the US dollar remained at $1.29 a euro, almost unchanged from yesterday.

Dim economic outlook caused several basic commodities, including crude oil, to debase in recent trading sessions.

Crude oil futures for September delivery collapsed 3 percent, or $2.28 a barrel, to close at $75.74 a barrel. The liquid has lost 7 percent over the past three trading sessions.

In Asia, crude oil slightly recovered to above $76 a barrel this morning.

By Thuy Doan

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