Gold climbs to highest price ever

The price of gold in Vietnam unexpectedly jumped to VND39.8 million a tael (1.2 ounces) on July 25 as global price hit new record on concerns over the US debt.

The metal was bought VND39.72 million and sold at VND39.8 million at Saigon Jewelry Company at the opening time this morning. However, gold continuously made correction with a slow pace. By 9:30 am local time, most gold shops bought the metal at VND39.65 million and sold at above VND39.7 million.

The Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND39.65 million and sold at VND39.75 million.

Sacombank Jewelry Company quoted the price at VND39.66 million for buying and VND39.74 million for selling.

Domestically, gold fetched around VND350,000 a tael lower than global price.

State-owned Vietcombank continued to buy the greenback at VND20,550 and sell at VND20,610, unchanged as of last weekend. The inter-bank exchange rate stood firmly at VND20,608 per dollar.

Internationally, gold surged to a record as US lawmakers failed at the weekend to reach an agreement on raising the federal debt limit, boosting haven demand on concern that the government of world’s largest economy may default.

Gold for immediate delivery climbed as much as 1.4 percent to $1,624.07 an ounce before trading at $1,614.15 at 11:17 am Vietnamese time.

House Speaker John Boehner unexpectedly withdrew from the talks with President Barack Obama on cutting budget deficit on July 22, causing much trouble for the negotiations to raise the US debt limit.

John Boehner told Republicans that there’s no agreement on a plan for increasing the ceiling before a default threatened for August 2. Standard & Poor’s has warned there is a 50 percent chance it will lower the US government’s AAA credit rating by one or more levels.

The euro exchange rate against the US dollar was at $1.44 a euro in Tokyo this morning.

Crude oil futures for September delivery traded below $99 a barrel in New York.

By Hoang Nhan

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