Vietnam’s gold hits lifetime high on surging global price

Gold rose to a record high in Vietnam on Wednesday as the precious metal on international markets was within sight of historic highs on concerns over the Europe’s sovereign-debt crisis.

Saigon Jewelry Holding Company, Vietnam's largest gold merchant, announced that gold was sold for VND38.65 million (US$1,933) per tael in Ho Chi Minh City and VND38.67 million in Hanoi, an increase of around VND430,000 from Tuesday’s close.

A tael is equivalent to 1.21 ounces.

Meanwhile, the Hanoi-based Phu Quy Jewelry bought SJC-brand gold at VND38.47 million per tael and sold at VND38.57 million per tael as of 9 am local time.

Many people rush to gold shops in order to take profits from the surging gold price.

Sacombank Jewelry Company bought 2,300 taels by 9 am this morning, says sales manager Ton The Vinh Quyen, adding the firm purchased 4,000 gold taels yesterday.
State-owned Vietcombank bought the greenback at VND20,550 and sold at VND20,610, a decrease of VND10 per dollar in buying price and VND20 per dollar in selling price over the previous day. Meanwhile, the interbank exchange rate also remained at VND20,608.

Internationally, gold unexpectedly jumped by the end of the trading session as Europe’s escalating debt crisis boosted demand for the metal as a haven investment.

Gold for immediate delivery gained as much as $12.9 an ounce, or 0.8 percent, to close at $1,568.3 an ounce on the Kitco trading floor.

In Asia, the metal slightly dropped as investors sold gold to take profits. Spot gold sank $1.6 an ounce to trade at $1,566.7 an ounce as of 8:50 am Vietnamese time.

The metal was supported by uncertainties in Europe and the US. The US lawmakers have not reached an agreement in raising debt ceiling while the date when the government is projected to exhaust its borrowing authority is coming.

Ireland joined Portugal and Greece as the third euro-area nation to have its credit rating reduced to below investment grade.

Holdings at SPDR Gold Trust, the largest exchange traded fund backed by bullion, increased by 1.7 percent to 1,225.4 metric tons from 1,205.4 metric tons, the company website’s showed.

The euro exchange rate against the US dollar fell to below $1.4 a euro in Tokyo this morning from above $1.4 a euro the previous day.

Crude oil futures for August delivery surged as much as $2.28 a barrel to close at $97.43 a barrel on the New York Mercantile Exchange.

This morning, crude oil slid $0.4 a barrel to trade at $97.03 a barrel as of 8:50 am Vietnamese time.

By Bao Phuong

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