Gold slides; dollar heats up

The price of gold in Vietnam retreated from the record high of VND31.35 million a tael (1.2 ounces) made the previous day on September 30. Meanwhile, global price touched an all-time high of US$1,313 an ounce.

At most gold shops, SJC-brand gold of the Saigon Jewelry Co. was bought at VND31.15 million and sold at VND31.23 million as of 9 am local time.

Sacombank Jewelry Co. bought the metal at VND31.17 million and also sold at VND31.23 million.

Trading on bullion market remained subdued. Most investors bought the metal to cut losses of previous trades. Selling demand still took the upper hands on the market as high prices clipped buying.

The precious metal gained more than VND2 million a tael, or 7 percent, this month.

After being cheaper than global prices for about two months, domestic gold prices currently fetched around VND100,000 a tael higher than global prices.

Some gold traders said that it was the result of a scarce gold supply. However, other jewelers confirmed that there was no shortage of the precious metal.

On black market the US dollar exchange rate against the Vietnamese dong jumped after remaining steady for a few weeks. Dollars were purchased at VND19,650 and sold at VND19,710 in Ho Chi Minh City. In Hanoi, the greenback was sold at VND19,690 and bought at VND19,640.

Internationally, bullion extended rally to another record as a weaker dollar boosted the demand for the metal as an alternative asset.

Gold for immediate delivery rose as much as $0.9 an ounce to close at $1,310.9 an ounce. Earlier, the metal fluctuated in a narrow range of $1,304-1,313. Profit-taking pressure was not able to cause prices to sink lower as investors expected that gold would probably advance further, especially when it had leaped over the resistance mark of $1,300-1,305 an ounce.

In Asia, the metal fell sharply, giving up more than $2 an ounce to trade below $1,309 an ounce as of 9:40 am Vietnamese time.

Bullion advanced 5 percent this month.

The euro exchange rate was above $1.36 a euro this morning from below $1.36 the previous day. The greenback has continuously plummeted since the US Federal Reserve announced that it would ease monetary policy further to bolster the country’s economy.

Crude oil futures for November settlement hopped $1.68 a barrel, or 2.2 percent, to $77.86 a barrel, the highest level since August 11.

Crude oil strongly surged as a report by the US Energy Department showed an unexpected decline in gasoline supplies as suppliers cut operating rates to the lowest level since April.

This morning, crude oil traded near $78 a barrel.

By Sao Khue

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