Gold hits all-time high

The price of gold in Vietnam hit a record high on September 15 after global market climbed to an all-time high of US$1,276 an ounce as a worsen European financial turmoil spurred the demand for the metal as a safe-haven.

At most gold shops, the metal was bought at VND29.7 million and sold at VND29.75 million shares, an increase of VND400,000 a tael.

Domestically, gold fetched VND450,000 a tael lower than global prices.

Jewelers continued to keep a narrow range between selling and buying prices at to boost trading as bullion market became muted after the metal hit VND29.5 million.

Dollar exchange rate on black market remained stable. The greenback was bought at VND19,490, and sold at VND19,510.

Commercial banks purchased the US dollar at VND19,450, and sold at VND19,500, almost unchanged in the past few weeks.

Internationally, the precious metal surged to record on demand for a haven against turmoil in the global economy and financial markets.

Gold for immediate delivery jumped 1.9 percent to close at $1,269.7 an ounce, marking the strongest rally in the past four months, after fluctuating between $1,256.4 and $1,275.7 an ounce.

In Asia, after sliding because of profit-taking, the metal resumed gains. Spot gold was trading at $1,270 an ounce as of 9am Vietnamese time.

Most major investment funds bought gold heavily after just watching the market for about a week. SPDR Gold Trust, the largest exchange-traded gold-backed fund, purchased 6.1 metric tons, increasing its holdings to 1,298.7 metric tons, figures on the company’s website showed.

The US economic data released yesterday was all positive numbers. Retail sales rose 0.4 percent in August. While inventory edged up 1 percent in July, the highest level in the past two months.

However, economic recovery outlook became faltering in Europe as statistics announced the same day showed that German investor confidence, which aims to predict developments six months ahead, dropped to 19-month low. Meanwhile, a positive report on GDP growth by European Commission imposed debasement pressure on the precious metal one day earlier.

Gold is heading for a tenth consecutive annual rally and has advanced 16 percent this year amid economic uncertainty.

The dollar exchange rate against the euro sharply dropped to $1.3 a euro in Tokyo this morning.

Light sweet crude oil slipped $0.39 a barrel, or 0.5 percent, to close at $76.8 a barrel.

This morning, crude oil traded near $76 a barrel.

By Kha Lam

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