Gold heads to VND29 million

The price of gold in Vietnam exceeded VND28.7 million a tael (1.2 ounces) on June 28 as global market opened the week on a rising trend.

The precious metal was bought at VND28.65 million and sold above VND28.7 million, an increase of VND20,000-VND30,000 a tael over last weekend, depending on gold brands.

Gold once again heads towards the VND29 million mark amid speculation that the global price would set new records in the near future.

Trading on bullion market last weekend was fairly low as investors expected the metal would continue to climb higher.

The dollar exchange rate edged down after a sharp rise last weekend. On free market, the greenback was purchased at VND19,000 and sold at VND19,020, a decrease of VND20-30 per dollar. At Vietcombank, dollars was bought at VND18,980 and sold at VND19,020.

In Asia, spot gold rose to above US$1,257 an ounce as of 10 am Vietnamese time, from closing price $1,256.7 in New York last weekend.

According to international analysts, gold has been benefiting from low interest rates of major currencies and a prolonged European debt crisis. The metal has gained 15 percent this year, while the euro has lost 14 percent against the greenback.

Holdings at SPDR Gold Trust remained at a record 1,316.2 metric tons, the company’s website showed.

Low interest rates and high safety currencies, including the US dollar and the yen fell after the G-20 said advanced economies would aim to at least halve their deficits by 2013 and stabilize debt-to-output ratios by 2016.

The euro exchange rate was at $1.24 this morning.

Crude oil jumped to a seven-week high due to debasement of the greenback and concerns over a tropical storm Alex, predicted to disrupt production.

Crude oil futures for August delivery traded at US$79.4 a barrel this morning, up from below $79 a barrel last weekend.

The liquid has advanced 11 percent in the past year.

By Bao Phuong

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