Demand boosted as bullion price falls

The gold price in Vietnam fell to VND21.20 million a tael (1.2 ounces) on August 17, a decline of VND30,000 a tael from last weekend while demand for the precious metal is rising due to the approaching wedding season.

The metal was bought at VND21.15 million (US$1,143) and sold at VND21.20 million ($1,146) at most jewelers, fetching VND200,000 a tael more than the global rate.

According to a member of staff at the Hanoi branch of Phu Nhuan Jewelry Co., jewelry was selling like hot cakes.

The trading volume was 1.5 times higher this month, the Hanoi-based jeweler, Bao Tin Minh Chau said.

On the SBJ trading floor, matching price swung in a wide range of VND20.26-20.60 million a tael, with more than 380,000 taels traded by 10am local time.

After losing $7.8 an ounce last week, the global bullion price continued to sink as the greenback gained back its attraction against other currencies, with the inflation pressure on major economies easing.

In Asia, bullion for spot delivery was $943.8 an ounce, $4.8 lower than the closing price in New York.

The dollar exchange rate, supported by the improvement of the US economy, fell to below $1.42 a euro.

Crude oil declined as the US Department of Labor announced the country’s CPI remained unchanged year on year while consumers’ trust fell sharply this month.

Crude oil for September delivery dropped by 55 cents a barrel from the previous day to $66.96 a barrel in New York.

Compiled by Thuy Doan

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