Gold price in Vietnam hit an all time high, VND22.54 million a tael (1.2 ounces), on October 6 as global price rose 1.5 percent on last night’s trading sessions because a slumping dollar spurred demand for the metal as a store of value.
At most gold shops, gold was bought at VND22.45 million and sold above VND22.50 million, an increase of VND200,000 a tael more than previous day.
The metal’s previous record high was VND22.50 million made on September 17.
Gold traders became more cautious as the price sharply surged. Trading gap between buying and selling prices has been extended to VND100,000 from VND50,000 in previous sessions.
With the high price, buying was expected to be frozen while selling would be significantly improved.
Domestic price was rising slower than global price due to low demand for the metal.
On the SBJ trading floor, matching prices approached VND22 million a tael. Trading volume was fairly high with nearly 270,000 taels changing hands at VND21.57 million – VND21.94 million by 9:25am local time.
Internationally, the precious metal climbed as a tumbling greenback bolstered the metal’s appeal as an alternative investment.
In New York, spot gold rose as much as US$14.9 an ounce, 1.5 percent, to $1,018.2 an ounce.
Gold futures for December settlement gained $13.5 an ounce, 1.3 percent, to $1,017.18 an ounce. Earlier the metal reached $1,018.9 an ounce, the highest level since September 24.
In Asia, gold for immediate delivery traded above $1,019 an ounce this morning.
SPDR Gold Trust, the biggest gold-backed exchange-traded fund, bought 1.52 metric tons yesterday, increasing its holdings to 1,098.07 metric tons. The firm had previously purchased 1.2 metric tons, bringing its holdings to 1,096.55 metric tons on October 2.
The US Dollar Index, which tracks the greenback’s value against a basket of six major currencies, dropped as much as 0.5 percent.
Investors sold dollar and shifted to stock markets, bullion and other high interest rate currencies after Goldman Sachs recommended investors to buy shares of the US major banks, such as Bank of America, Wells Fargo, and JP Morgan Chase.
A report by the US Institute for Supply Management showed that non-manufacturing index advanced to 50.9 in September from 48.4 in August.
In addition, debasement pressure on the greenback was strengthened after the UK’s Independent newspaper said Arab oil states may switch to a basket of currencies, including the euro and yen, for oil trading.
The dollar exchange against the euro slid to nearly $1.47 in Tokyo this morning.
Crude oil hiked as the US stock markets strongly rebounded, snapping last week’s downwards momentum.
Crude oil futures for November delivery rose $0.46 a barrel, to $70.41 a barrel on the New York Mercantile Exchange.
In Asia, crude oil was traded at nearly $70.5 a barrel this morning.