Gold stands near record

The price of gold in Vietnam opened week steadily at VND29.25 million a tael (1.2 ounces) on September 6 after making a record high above VND29.3 million on September 3.

Most gold shops bought the metal at VND29.2 million and sold at VND29.25 million, almost unchanged as of last weekend.

Domestic prices, however, fetched VND450,000 a tael lower than global prices.

The US dollar exchange rate against the Vietnamese dong has been almost stable for a half month. On black market, the rate was at VND19,510 per dollar for buying and VND19,530 for selling, up VND10 per dollar over the previous day.

In Asia, the precious metal slightly rose this morning, fluctuating between US$1,248 and $1,249 an ounce from the closing price of $1,247.6 an ounce in New York last weekend.

A positive report on the US labor market in August released last Friday prompted equities to recover. Asian stock markets also strongly jumped, led by Japan’s Nikkei 225 index with an increase of 1.5 percent as of 9:30 am Vietnamese time.

The role as a safe-haven of the metal has weakened due to the revival of stocks and investors’ risk appetite. In addition, gold was also under profit-taking pressure after exceeding $1,250 an ounce, the highest level in the past three months.

SPDR Gold Trust, the largest exchange-traded fund backed by bullion, had sold 8.1 metric tons since September 2, reducing holdings to 1,294.4 metric tons.

However, according to analysts, outlook of the metal in long term stayed optimistic as global economic recovery would remain faltering. Meanwhile, measures to stimulate growth by pumping money into the economy would be prolong in the US and Europe, that might boost high inflation.

The US market closed for the Labor Day today.

Crude oil futures for October delivery were trading above $74 a barrel in New York this morning.

The euro exchange rate against the US dollar stood near $1.29 a euro this morning in Tokyo.

According to the US Labor Department, the country cut 54,000 labors last month, much lower than a forecast of 100,000 labors. Jobless rate slightly rose by 9.6 percent as expected.

Compiled by Ngoc Thien

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