Gold remains stable at VND29.25 million

The price of gold in Vietnam continued to tread water at VND29.25 million a tael on September 7. However, trading on bullion market was muted as investors hesitated to buy or sell.

In Hanoi, Phu Quy Jewelry bought SJC-brand gold at VND29.21 million and sold at VND29.26 million.

In Ho Chi Minh City, Sacombank Jewelry Co purchased the metal at VND29.2 million and sold at VND29.24 million.

High prices discouraged buyers while gold-keepers refused to sell as they expected that the rated would climb higher.

Huynh Trung Khanh, the World Gold Council's advisor in Vietnam and deputy chairman of the Vietnam Gold Trade Association, forecasted that the prices would hit $1,300-$1,330 an ounce by the end of this year. However, he added that the metal would make some corrections on its way to these levels.

The US dollar exchange rate against the Vietnamese dong declined VND10 per dollar on black market. Dollars were bought at VND19,495-19,500 and sold at VND19,515-19,520.

Commercial banks continued to fix the rate at VND19,500 per dollar.

Internationally, bullion hovered around US$1,250 an ounce.

In Asia, gold for immediate delivery rose as much as $1.6 an ounce over the previous day to trade at $1,249.4 an ounce as of 9:45 am Vietnamese time.

The precious metal was backed by the demand for jewelry of India, the biggest gold user, in the year’s final months to mark festivals and weddings. However, a revival on stock markets had lessened the appeal of the metal as a high-safety investment channel.

The euro exchange rate fell to $1.28 a euro from nearly $1.29 yesterday in Tokyo this morning. The shared-currency dropped on concern that some European banks may struggle to raise additional funds.

Crude oil futures for October settlement swung around $74 a barrel this morning.

By Kha Lam

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