|
Gold rises as dollar escalates again
The price of gold in Vietnam approached VND36 million a tael (1.2 ounces) on December 13 as the US dollar exchange rate against the Vietnamese dong unexpectedly jumped by VND100 per dollar on free market.
Most gold shops bought the metal at VND35.85 million and sold at around VND35.95 million as of 9 am local time, an increase of VND60,000-70,000 a tael over last weekend.
Sacombank Jewelry Company bought gold at VND35.92 million and sold at VND35.94 million as of 9:15 am local time.
At the same time Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND35.87 million and sold at VND35.97 million.
Domestically, gold fetched VND500,000 a tael higher than global prices.
This morning, the US dollar exchange rate suddenly climbed on free market. Dollars were bought at VND21,100 and sold at VND21,160, up VND70-80 per dollar over last weekend. The greenback lost VND170 per dollar last week.
Internationally, gold faintly fluctuated around the closing price in New York last weekend in Asia this morning.
Gold for immediate delivery slid US$0.4 an ounce to stand at $1,386.4 an ounce as of 9:35 am Vietnamese time.
Last week, gold moved inversely to a forecast by analysts, declining 2 percent due to a stronger dollar and profit-taking pressure. The news that China continued to increase compulsory reserves on December 10 and might raise its benchmark interest rates this week also caused debasement pressure on the precious metal.
The possibility of an interest rate raise increased after data released on Dec. 11 showed that the country’s inflation climbed to 5.1 percent in November, the highest level in the past 28 months.
SPDR Gold Trust, the world’s largest exchange-traded fund backed by bullion, continued to dump nearly 4 metric tons last Friday, reducing its holdings to 1,289.8 metric tons, the company’s website showed.
In addition, positive US economic data released last Friday tempted investors to shift their capitals to high-risk investment channels instead of safe assets, including gold. The US consumer confident rose to six-month high while trade deficit fell sharper than forecast.
The euro exchange rate against the US dollar stood firmly above $1.32 a euro in Tokyo this morning, almost unchanged as of last weekend.
Thuy Doan
sggp
|
