Gold drops on dollar rally

Despite the global bullion price sliding by 1.5 percent last night, the gold price in Vietnam fell only slightly August 18.

Most gold shops fixed the price at VND21.12 million a tael (1.2 ounces) for buying and VND21.17 million for selling, a decline of VND30,000 a tael from the previous day.

Trading volume was reportedly fairly thin on both the bullion market and trading floors, as investors became more wary due to a sharp decline in global price.

On the SBJ trading floor, 275,220 taels were changing hands at VND20.14 million a tael by 11am local time.

More than 54,300 taels were traded at VND20.11 million on the ACB trading floor.

Globally, spot gold dropped by US$14.4 an ounce, 1.5 percent, to $934.2 an ounce on the New York Mercantile Exchange, the biggest drop since July 28.

In Asia, the metal hovered around $940 an ounce this morning.

As the global economic recession has eased, curbing bullion’s appeal as an alternative investment, the price of the precious metal is moving as a normal commodity.

At this moment, the factors that back bullion prices no longer exist.

Holdings at SPDR Gold Trust, the world’s biggest gold-backed exchange-traded fund, remained unchanged at 1,065.49 tons, the company’s website showed.

The dollar rallied for the second day against a basket of six major currencies.

In New York, the dollar exchange rate against the euro rose to just below $1.41.

Crude oil fell below $67 a barrel as the US stock markets lost two percent last night.

Crude oil price for September delivery declined $0.76 to $66.75 a barrel, the lowest price since July 29.

Compiled by Thuy Doan

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