Gold advances, reversing previous loss

The price of gold in Vietnam rebounded on July 8 after the global price climbed above $1,200 an ounce again.

At most gold shops, the precious metal was bought at VND28.25-28.30 million and sold at VND28.30-28.35 million, an increase of VND150,000 a tael.

Investors promoted buying as they believed that the metal would not fall below VND28 million. However, trading on bullion market was not considerably high.

In comparison with global conversion price, domestic price fetched VND200,000-250,000 a tael more.

The dollar exchange rate against the Vietnamese dong unexpectedly jumped to VND19,200 per dollar last evening from VND19,140 last morning. However, the rate declined to VND19,160 for buying and VND19,180 for selling this morning.

According to a foreign currency exchange agent, demand for foreign currencies is rising as firms have needed them to make payments and for the importation of goods for the next six months. The gap between buying and selling prices narrowed, encouraging foreign-currency holders to sell.

Meanwhile, the rate at commercial banks has remained stable for a week at VND19,065 and VND19,095.

Internationally, despite a sharp rally on Wall Street, gold bounced back to $1,200 as six-week low tempted investors to increase holdings.

Gold for immediate delivery gained $9.1 an ounce, or 0.8 percent, to close at $1,204.2.

In Asia, the metal advanced to $1,205-$1,207 this morning.

The euro exchange rate rose amid recent positive views concerning the European finance industry’s strength. The rate was at $1.27 a euro this morning, from $1.26 yesterday, the highest level in the past seven weeks.

Safe-haven currencies, including the American greenback and Japanese yen, fell due to optimistic economic news coming out of Asia.

The Australian government announced that its employment rolls increased by 45,900 in June. The country’s employers have created more jobs for six consecutive months.

Crude oil climbed to one-week high after a bright US retail sales report and statistics showing that the country’s oil reserves dropped last week.

The International Council of Shopping Centers said US retail sales probably expanded at an average monthly rate of 4 percent in the first five months of the retail fiscal year that began Jan. 31, the biggest gain since 2006.

The US Energy Department raised its forecast for global energy consumption this year to 85.82 million barrels per day from 85.51 million barrels in June, up 1.9 percent over last year.

Light sweet crude oil futures for August settlement added $2.09 a barrel, or 2.9 percent, to $74.07 a barrel in New York last night.

This morning, crude oil surpassed $75 a barrel.

By Vinh Nghi

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