Gold resumes gain on good news

The price of gold in Vietnam suddenly jumped by VND120,000 a tael (1.2 ounces) over the previous day on August 4 after the global price increased sharply.

Sacombank Jewelry Co. bought gold at VND27.9 million and sold at VND27.91 million.

At Saigon Jewelry Co., the metal was purchased at VND27.86 million and sold at VND27.93 million.

However, trading on the bullion market remained muted.

The dollar exchange rate against the Vietnamese dong still poised above VND19,200 on the black market. Dollars were bought at VND19,210, and sold at VND19,230-19,240.

Meanwhile, commercial banks continued to keep the dollar exchange rate at VND19,100.

Internationally, the precious metal advanced for the third straight day, as the US dollar devalued, urging investors to seek the metal as an alternative asset.

Gold for immediate delivery climbed US$3.6 an ounce, or 0.3 percent, to close at $1,186.6.

In Asia, gold maintained rising momentum with a rather strong pace. The metal was trading at $1,194.1 an ounce, up $7.5 over the closing price in New York.

Gold has been supported by the greenback’s debasement since the beginning of this week.

The euro exchange rate against the greenback touched $1.33, the highest level in the past three months, in New York last night.

This morning, the rate was at above $1.32 a euro in Tokyo.

According to analysts, the US Federal Reserve may prolong credit-easing measures to revive its sluggish economic recovery. In addition, it will likely maintain interest rates around zero for an extended period.

The National Association of Realtors announced pending home sales sank to a record low in June, moving inversely from what economists had forecast. A report by the US Commerce Department showed that orders placed with US factories declined by 1.2 percent in June, doubling the 0.5 percent figure Wall Street’s analysts forecasted previously.

Moreover, the metal benefited from news out of China as the country’s central bank announced that it would let more banks import and export gold, and allow overseas companies more access trading the precious metal. China will increase the number of foreign investors on the Shanghai Gold Exchange.

The role as a safe haven of gold also improved after the world’s largest economy broadcast negative data and Wall Street slumped.

Crude oil futures for September delivery rose as much as $1.21 a barrel, or 1.5 percent, to close at $82.55 a barrel on the New York Mercantile Exchange, the highest level in three months.

However, because of unfavorable economic data, crude oil fell to around $82.3 a barrel this morning.

By Dieu Khue

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