Gold retreats on stronger dollar

Gold was bought at VND33.05 million and sold at VND33.1 million at most gold shops, fetching VND100,000 a tael higher than global prices.

Sacombank Jewlery Company bought gold at VND33.05 million and sold at VND33.09 million as of 10 am local time.

At the same time, Hanoi-based Phu Quy Jewelry purchased SJC-brand gold of Saigon Jewlery Company at VND33.03 million and sold at VND33.12 million.

Trading on bullion market remained muted, prompting jewelers to lower the gap between selling and buying prices to VND40,000-50,000.

Meanwhile, the US dollar exchange rate against the Vietnamese dong suddenly shot up on free market this morning. Dollars were purchased at VND19,870 and sold at VND19,920, an increase of VND40-60 per dollar.

State-owned Vietcombank continued to keep the rate at VND19,490 for buying and VND19,500 for selling.

Internationally, bullion plunged as the US dollar strengthened for a second day, eroding the precious metal’s appeal as an alternative asset.

Gold for immediate delivery lost $12 an ounce over the closing price in New York to $1,357.9 an ounce as of 9:25 am Vietnamese time.

Holdings at SPDR Gold Trust decreased by 2.43 metric tons to 1,301.9 metric tons on October 15.

The US dollar rose 0.2 percent against a basket of six major currencies. The euro exchange rate against the greenback fell to below $1.39 a euro in Tokyo this morning from $1.4 a euro last weekend.

However, the greenback’s debasement pressure remained and may prolong to the next meeting on monetary policy of the US Federal Reserve in the beginning of November.

Still, bullion may gain this week as investors seek an alternative to currencies. The metal has advanced 11 consecutive weeks, hitting an all-time high of $1,387.35 an ounce on October 14.

Crude oil futures for November settlement dropped as much as 69 cents, or 0.9 percent, to $80.56 a barrel on the New York Mercantile Exchange.

This morning, crude oil was traded at $80.77 at 10:08 am Vietnamese time.

Thuy Doan

sggp

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