Gold and dollar rise sharply

The price of gold in Vietnam surpassed VND37.5 million a tael (1.2 ounces) on February 18 with support from rising US dollar exchange rate and global prices.

By 10 am local time, most jewelers raised their prices by VND500,000 a tael over the closing prices the previous day. However, after climbing to above VND37.5 million a tael, the metal made a reverse.

Sacombank Jewelery Company bought gold at VND37.31 million and sold at VND37.41 million as of 9:50 am local time.

Meanwhile, Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND37.37 million and sold at VND37.5 million at the same time.

The precious metal has gained VND1.4 million a tael this week, hovering at the highest level since November 11 last year.

Domestically, gold fetched VND400,000-500,000 a tael higher than global prices.

Trading volume on bullion market was thin as high prices prompted investors to be cautious.

The interbank US dollar exchange rate continued to fall by VND5 per dollar to VND20,678 this morning, causing a drop in the rates at commercial banks. State-owned Vietcombank bought dollars at VND20,785 and sold at VND20,885. 
Meanwhile, the dollar exchange rate remained chaotic on free market. Some currency exchange agencies announced the rates at VND22,100 for buying and VND22,250 for selling as of 9 am local time whereas some other agencies sold dollar at VND22,100 or refused to quote their rates.

Internationally, gold set for biggest weekly gain in 2011 as unrest in the Middle East and North Africa continued to fuel the demand for the precious metal as an alternative asset.

Gold for immediate delivery advanced as much as $9 an ounce, or 0.7 percent, to close at $1,385.6 an ounce on the Comex in New York.

In Asia, gold slightly made correction to trade at $1,384 an ounce as of 9:45 am Vietnamese time.

The euro exchange rate against the greenback was nearly $1.36 a euro in Tokyo this morning, almost unchanged as of the previous day.

Light sweet crude oil futures were traded near $86.3 a barrel at 9:50 am Vietnamese time.

By Thuy Doan

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