Gold surged in Vietnam by VND150,000 a tael over yesterday to VND27.05 million on December 15, as global prices climbed for the second day. A slumping dollar boosted demand for the precious metal as an alternative asset.
Most gold shops purchased at VND26.95 million and sold at VND27.05 million, fetching VND150,000 a tael higher than global prices.
Markets saw robust trading yesterday as customers took advantage of low prices.
Investors, mostly small-scale, also increased buying.
With a stabilized dollar exchange rate and profuse gold supply, the bullion market looked steady.
Trading volume was fairly high at the SBJ trading floor with 274,120 taels changing hands at VND24.88-25.149 million by 2pm local time.
Globally, bullion rose slightly as the dollar declined, prompting investors to seek the metal as a value reserve.
Spot gold gained as much as US$11.3 an ounce, 1 percent, to $1,127.4 in New York.
In Asia, gold rose to $1,128-1,130 an ounce this morning.
Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by the metal, rose to 1,116.55 metric tons yesterday, its website showed.
The US Dollar Index slid 0.3 percent against a basket of six major currencies after Abu Dhabi’s bailout of a Dubai World unit eased up concerns on the group’s default.
The dollar exchange rate against the euro remained above $1.46.
The US currency was backed by confidence that the Federal Reserve would soon raise interest rates as the country’s recent economic indices showed positive developments. However, it was forecast the FED would continue to keep benchmark rates at a low level of 0-0.25 percent in meetings December 15-16.
Analysts said the main pressure on the metal loss was the greenback’s recovery and major funds’ heavy selling.
Meanwhile, jewelers’ buying and the demand to increase gold holdings of central banks supported the price of the precious metal.
Crude oil fell to the lowest level within the last 11 weeks.
January-delivery crude oil dropped $0.36 a barrel to $69.51.