Gold jumps as dollar exchange rate raised

The price of gold in Vietnam spiked by VND200,000 a tael (1.2 ounces) over the previous day on August 19 due to the adjustment of dollar exchange rate against the Vietnamese dong.

At most gold shops, the precious metal was purchased at VND28.65 million and sold at VND28.75 million.

Prices moved wildly in the past 24 hours. Last morning, the metal bounced by VND300,000 a tael over the previous day then declined VND150,000 a tael by the evening.

Some small investors sold holdings to book profits. Sacombank Jewelry Co. said it bought more than 6,000 taels yesterday, three times higher than buying volumes of the previous days.

However, trading volume on bullion market has not improved as most investors remained cautious amid prices changed rapidly.

The dollar exchange rate on free market climbed again this morning. Dollars were bought at VND19,440, an increase of VND20 per dollar, and sold at VND19,490, up VND10 per dollar over the previous day. At some foreign currency exchange offices, the rate was fixed at VND19,500.

Commercial banks also lifted the rate by VND150. State-owned Vietcombank bought dollars at VND19,425, and sold at VND19,460. Saigon Thuong Tin Commcercial Bank or Sacombank set VND19,410 per dollar for buying, and VND19,460 for selling.

The State Bank of Vietnam raised interbank rates to VND18,932 from VND18,544, up 2.1 percent, since August 18.

Globally, despite rallying US stock markets, spot gold rose as much as US$4.6 an ounce, or 0.4 percent, to close at $1,230.3 an ounce in New York.

In Asia, the metal slid to $1,129-$1,130 an ounce this morning.

SPDR Gold Trust, the largest exchange-traded fund backed by bullion, bought 0.9 metric tons of gold yesterday, increasing its holdings to 1,295.5 metric tons, the company’s website showed.

The dollar exchange rate against the euro slightly recovered to $1.28 a euro from nearly $1.29 last morning.

Crude oil finished at $75.42 a barrel, falling $0.35 a barrel on the New York Mercantile Exchange.

This morning, crude oil continued to retreat to just above $75.3 a barrel.

By Hoang Nhan

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