Gold rebounds for second day

Domestic gold price increased to VND90,000 a tael (1.2 ounces) on May 25, after gaining by VND100,000 a tael yesterday.

Bullion was bought at VND27.45 million and sold at VND27.53 million.

Many investors sold the metal to book profit when prices rose above VND28 million. Trading volume, however, did not improve even though rates recently fell to below this level.

The US dollar exchange rate rose to above VND19,000 this morning on the free market. A dollar was bought at VND18,970, down VND10 per dollar, and sold at VND19,020, up VND20.

Some commercial banks fixed the exchange rate at the same level with that of free market.

Globally, the precious metal rebounded after declining for four straight days, as low prices prompted investors to increase buying amid rising political tension on the Korean peninsula and the worsening debt crisis in Europe.

Spot gold edged up US$15 an ounce to trade at $1.190.

Bullion futures for June delivery surged by $17.9 an ounce, or 1.5 percent, to close at $1,194.

Gold reached an all-time high of $1,249.40 an ounce on May 14, before slumping more than $83 by ay 21, as investors sought a haven for their investments over concern that the European debt crisis may worsen.

SPDR Gold Trust, the biggest exchange traded funds backed by bullion, increasing gold reserves by 16.74 metric tons, to a record 1,236.89 metric tons yesterday, according to figures on the company’s website. The company’s holdings have gained 9 percent this year.

The US Dollar Index, which tracks the greenback’s strength against a basket of six major currencies, rose as much as 0.7 percent to 86.99, pushing the euro exchange rate to 1.231 a dollar.

Compiled by Thuy Doan

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