Gold climbs VND1 million per tael

The price of gold in Vietnam rose by VND1 million a tael (1.2 ounces) over the previous day on August 31 as global price gained nearly $50 an ounce in the trading session in New York last night.

Saigon Jewelry Company, the biggest gold shop in Vietnam, bought gold at VND46.9 million and sold at VND47.2 million at 11:30 am local time in Ho Chi Minh City. In Hanoi, the company quoted the price at VND46.9 million for buying and VND47.22 million for selling.

Sacombank Jewelry Company collected gold at VND46.86 million and sold at VND47.24 million.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND46.9 million and sold at VND47.3 million at the same time.

Domestically, gold fetched around VND1.3-1.5 million higher than global price.

On foreign currency market, the dollar exchange rate at commercial banks remained stable. Meanwhile, the rate continued declined on free market. Dollars were bought at VND20,960 and sold at VND21,020, a decrease of VND60 per dollar in both buying and selling prices.

Internationally, gold surged after consumer confidence sank to 28-month low while the US stocks climbed to a four-week high on speculation the US Federal Reserve will ease monetary policy further to stimulate the economy, boosting the appeal of the precious metal as an alternative asset.

Gold for immediate delivery soared as much as $46.6 an ounce, or 2.6 percent, to close at $1,836.1 an ounce on the Comex in New York.

Gold futures for December delivery also gained $38.2 an ounce, or 2.1 percent, to $1,829.8 an ounce.

The Fed said in minutes of its meeting released yesterday that some policy makers, who weren’t identified, felt that recent economic developments justified a more substantial move beyond the pledge adopted at the August 9 gathering of the Federal Open Market Committee to hold its key interest rate at a record low until mid-2013.

The US consumer confidence in August fell to the lowest level since the recession in 2008. In Europe, confidence in the economic outlook in August plunged the most since December 2008 as a persistent debt crisis roiled markets and clouded growth prospects across the 17-nation euro region.

Holdings at SPDR Gold Trust, the largest exchange traded fund backed by bullion, increased by 2.5 metric tons over last weekend to 1,232.3 metric tons.

The euro exchange rate against the US dollar was above $1.44 a euro in Tokyo this morning.

Crude oil futures for October settlement gained $1.63 a barrel to close at $88.9 a barrel, the highest level in the last three weeks.

This morning, crude oil lost $0.43 to trade at $88.47 a barrel at 10:05 am Vietnamese time.

By Tue Minh

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