Gold makes correction after climbing to all-time high

The price of gold in Vietnam slightly fell on September 9 after hitting a record high the previous day as the global price made correction.

Saigon Jewelry Co., Vietnam’s biggest gold shop, bought gold at VND29.39 million and sold at VND29.43 million, a decrease of VND70,000 a tael over the previous day.

Domestic prices fetched VND400,000 higher than global prices.

Yesterday, bullion climbed to an all-time high of VND29.5 million a tael.

The bullion market remained muted as strong movements and a narrow gap between selling and buying prices were not enough to trigger trading.

Sacombank Jewelry Co. said the domestic gold supply became scarce after jewelers exported the metal heavily amid global prices were much expensive than domestic ones.

The US dollar exchange rate against the Vietnamese dong remained at VND19,490-19,500 for buying, and VND19,510-19,520 for selling. Foreign currency trading was as slow as gold trading.

Internationally, profit-taking pressure increased after the precious metal climbed to US$1,263.4 an ounce, the highest level in the past three months in New York last night.

Immediate-delivery gold closed at $1,256.2 an ounce, almost unchanged over the closing price the previous day.

In Asia, the metal slightly dropped as the Asian stock markets recovered after retreating for two straight days. Bullion was trading at $1,255 an ounce, down $1 an ounce, as of 9:35 am Vietnamese time.

According to a survey by 12 regional Fed banks, known as the Beige Book for the color of its cover, five regional banks reported economic growth at a moderate pace, two pointed to positive developments or net improvements, while the remaining five banks said conditions were mixed or decelerating. Thus, the world’s largest economy saw slowdown signs instead of double-dip recession.

Concerns over the European financial crisis have been eased as Portugal successfully issued government bonds yesterday.

The euro exchange rate recovered to above $1.27 a euro from below this level the previous day in Tokyo this morning.

Crude oil futures for October delivery rose as much as $0.58 a barrel to close at $74.67 a barrel.

This morning, crude oil continued to surge to above $75 a barrel.

By Vinh Nghi

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