Gold soars to record high amid dollar weakness

Gold prices surged by VND300,000 a tael (37.5 grams) in Vietnam on December 1 as global prices climbed to record highs on the back of a weak dollar.

Saigon Jewelry purchased gold at VND28.4 million and sold at VND28.53 million.

The market saw robust trading with most investors selling the precious metal to take profits.

At the SBJ trading floor, trading volumes topped 350,000 taels at prices ranging from VND26.001 million to VND26.7 million a tael.

Globally, gold advanced to a historic high of $1,204 as investors boosted purchases to protect their wealth against a slumping dollar.

Bullion has soared 37 percent this year and is headed for the biggest annual gain since 1979.

SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, purchased 0.61 tons, increasing its holdings to 1,130.6 tons, the highest level since June 24. It bought 2.13 tons on November 30.

Some analysts said the prices rose again since China said it would raise its gold reserve to 6,000 tons in the next three to five years.

The dollar fell against a basket of six major currencies as Dubai World announced it has begun negotiations with creditors to restructure a debt of $26 billion out of a total of $59 billion.

The pressure on the greenback increased after the Reserve Bank of Australia raised the benchmark rate for the third time in three months.

The dollar dropped to nearly $1.51 to a euro.

Compiled by Thuy Doan

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