Gold hits new high

Gold trading at Saigon Jewelry Company. (Photo: SGGP)
The price of gold in Vietnam jumped to an all-time high of VND29.45 million a tael (1.2 ounces) on September 8 after global price strongly rose amid concerns over European financial turmoil.

Bullion was bought at VND29.35-29.4 million and sold at VND29.4-29.45 million, an increase of VND140,000-200,000 a tael depending on gold brand.

As domestic prices remained cheaper than global prices, jewelers continued to maintain a narrow range between buying and selling prices.

According gold traders, with a new record high, trading on bullion market would probably improve. However, trading volume would not be high as most investors had sold the metal to book profits when the price hit VND29 million a tael.

The US dollar exchange rate against the Vietnamese dong was unchanged as of the previous day.

Globally, bullion rose as a slump in equities spurred demand for the precious metal as a safe haven. In addition, the Europe’s debt crisis unexpectedly became worse.

An industry group said Germany’s 10 largest banks may need 105 billion euros to meet new regulations, causing pessimism about the financial strength of European banking system.

Gold for immediate delivery rose as much as $8.6 an ounce, or 0.7 percent, to close at $1,256.2 an ounce in New York. Earlier, the metal hit $1,260.9 an ounce near a record high of $1,265.3 an ounce made on June 21.

December-delivery gold surged $8.2 an ounce to close at a record $1.259.3 an ounce. Earlier, it touched $1,261.6 an ounce, the highest level since June 28.

In Asia, the metal climbed by $2 an ounce to $1,258 as of 9:35 am Vietnamese time.

Asian stock markets tumbled today. Japan’s Nikkei 225 index fell nearly 2 percent, while Hong Kong’s Hang Seng index dropped 1 percent.

The shared-currency erased 1.5 percent, falling to nearly $1.27 a euro after bad news about European banking system was spread.

Holdings at SPDR Gold Trust, the world’s largest exchange-traded fund backed by bullion, stayed unchanged at 1,294.4 metric tons.

Crude oil futures for October settlement closed down $0.51 a barrel, or 0.7 percent, to 74.09 a barrel on the New York Mercantile Exchange.

Crude oil has declined 7 percent this year.

In Asia, the liquid continued to retreat to below $74 a barrel this morning.

By Vinh Nghi

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