Gold advances for second day

The price of gold climbed to VND26.6 million a tael on December 25 as the metal headed for its second straight advance on the international market. A slumping greenback spurred investors’ demand for the metal as a store of value.

Bullion was bought at VND26.5 million and sold at VND26.6 million, an increase of around VND150,000 over the previous day.

Most jewelers continued to fix a narrow gap between buying and selling prices as a buying tendency took the upper hand on the market. Some businesses, meanwhile, kept a high gap of VND200,000-300,000 a tael.

Representatives of jewelry companies said the recent decrease in gold price enhanced demand for the precious metal. Despite no sudden rise in trading volume, buying volume was rather steady.
Nguyen Thi Cuc, deputy general director of Phu Nhuan Jewelry, said her company sold 2,100 taels and bought nearly 900 taels on December 23.

On the SBJ trading floor, trading volume was extremely low as most international exchanges closed for Christmas. More than 63,000 taels were traded at VND24.6-24.76 million by 10:40am local time.
Globally, gold advanced for the second day as the US dollar retreated, prompting investors to seek a hedge to protect their wealth.

Spot gold rose as much as US$18.1 an ounce, 1.7 percent, to $1,106.2.

In Asia, the metal hovered above $1,106 an ounce.

The US Dollar Index, a six-currency gauge of the greenback’s strength, fell to a week low despite positive information from the US’s economy.

The dollar exchange rate was at nearly $1.44 a euro.

Analysts said the recent recovery of the US currency was temporary and it may face a new correction in the near future as loosening monetary policy and high budget deficit would continue to force the greenback to move downwards for a long period.

Crude oil approached near $80 a barrel.

Crude oil futures for February settlement gained $1.38 a barrel to $78.05 on the New York Mercantile Exchange.

Compiled by T.Doan

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