Gold spikes to VND30.7 million

The price of gold in Vietnam jumped to above VND30.7 million a tael (1.2 ounces) on September 27 though global price made corrections as investors sold the metal to lock in gains.

In Ho Chi Minh City, Sacombank Jewelry Co. bought the metal at VND30.64 million and sold at VND30.68 million as of 11 am local time.

At the same time, bullion was purchased at VND30.65 million and sold at VND30.7 million at Saigon Jewlery Co., the biggest gold shop in Vietnam.

Other gold traders fixed the prices around VND30.59-30.67 million. Some expanded the gap between selling and buying prices to VND140,000 a tael to prevent risk.

The Hanoi-based jeweler, Bao Tin Minh Chau, bought SJC-brand gold at VND30.61 million and sold at VND30.72 million.

According to gold traders, the supply became scarce as bullion has been exported heavily since the beginning of this year, while the State Bank of Vietnam has not allowed importing gold.

The US dollar exchange rate against the Vietnamese dong on free market in Ho Chi Minh City was at VND19,500 for buying and VND19,550 for selling. Meanwhile, in Hanoi, dollars were bought at VND19,520 and sold at VND19,540.

At this rate, global gold prices were equaled to domestic prices.

Internationally, the precious metal declined under selling pressure.

After opening at $1,297 an ounce, the metal slid to $1.296.3 an ounce as of 11:18 am Vietnamese time.

The metal hit an all-time high of $1,301 an ounce in New York last Friday.

Experts expected that bullion would make corrections in short-term after continuously hitting new highs. According to Sacombank Jewelry Co., the metal would possibly climb to $1,300-1,305 an ounce before falling to $1,250-1,260 an ounce.

Gold maintained rising trend for eight consecutive weeks despite a rallying global stock markets.

The euro exchange rate against the greenback was at $1.35 a euro this morning. The US dollar depreciated by 3.4 percent against the shared currency, and nearly 2 percent against the Japan’s yen after the country’s Federal Reserve announced that it prepared to pump more money into the world’s largest economy.

Crude oil futures for November settlement slightly rose to above $76.5 a barrel this morning.

By Thuy Doan

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