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Gold goes up as int’l prices set the trend
Gold moved up for the third straight day last Saturday, following the rise in international prices.
SJC, Vietnam’s biggest gold trader, said on its website that its gold price jumped by VND70,000 to VND19.54 million (US$1,118) a tael, or $931.4 per ounce.
Domestic gold keeps tracking the international price, Huynh Trung Khanh, a Vietnamese consultant for the World Gold Council, told Thanh Nien Daily, anticipating that Vietnamese gold will continue its upward trend this week.
“Vietnamese gold prices have come close to international price since the government allowed some companies to export gold,” Cao Thi Ngoc Dung, general director of Phu Nhuan Jewelry Joint Stock Co., told the Dau Tu Chung Khoan newspaper.
Dung also expected gold prices will continue to rise as the US’s economic outlook remains gloomy and investors consider gold as the safest haven for now.
International gold
Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, has risen 33 percent this year to a record 1,041.53 metric tons, according to Bloomberg.
Since the second quarter of 2007, banks worldwide have posted more than $1.2 trillion in credit losses and writedowns. The Standard & Poor’s 500 Index has dropped 17 percent this year while gold has gained 5.2 percent.
“Gold continues to resist any sustained decline, bouncing back quickly from any minor sell offs,” said Adrian Day, president of Adrian Day’s Asset Management in Annapolis, Maryland.
“The fly in the ointment could be a sustained and strong, broad global stock-market rally which would calm some investors’ fears. There is little prospect of this on more than a short-term basis in my view, so we continue to be buyers on any dips.”
Gold futures for April delivery on Friday rose $6.10, or 0.7 percent, to $930.10 an ounce on the Comex division of the New York Mercantile Exchange.
The SPDR Gold Trust’s holdings surpassed Switzerland’s Thursday, making the ETF the sixth-largest holder of bullion, based on data from the producer-funded World Gold Council. The US has the world’s largest gold reserves.
Thanh Nien
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