Gold and dollar cool down

The price of gold in Vietnam on November 3 retreated by VND120,000 a tael (1.2 ounces) from a record high set last evening as the dollar exchange rate on black market declined to VND20,850.

Gold was bought at below VND33.6 million and sold at below VND33.7 million this morning. Last evening, the precious metal soared to above VND33.8 million, an all-time high, due to an escalating dollar exchange rate on black market.

Sacombank Jewelry Co. purchased gold at VND33.62 million and sold at VND33.64 million as of 9:35 am local time.

At the same time Saigon Jewelry Co bought gold at VND33.59 million and sold at VND33.65 million.

Hanoi-based Phu Quy Jewelry bought SJC-brand gold at VND33.58 million and sold at VND33.68 million as of 9 am local time.

Bao Tin Minh Chau collected gold at VND33.56 million and sold at VND33.68 million.

After climbing to VND21,000 per dollar last evening, the dollar exchange rate dropped this morning. Dollars were bought at VND20,750 and sold at VND20,850 on free market in Hanoi, a decrease of VND50-70 per dollar over the previous day.

A foreign currency exchange agency said that the greenback exchange rate sharply rose over concerns on the balance of trade by the end of this year and speculation that the State Bank of Vietnam would probably adjust the rate in the near future.

Globally, gold didn’t show any clear direction as investors didn’t take any action before the US Federal Reserve’s meeting ended. The metal was expected to strongly change after the Fed’s announcement.

Gold for immediate delivery gained $6 an ounce to close at $1,358.5 an ounce on the Comex in New York.

In Asia, the metal sank $4 an ounce to trade at $1,354 an ounce as of 9:45 am Vietnamese time.

Analysts said that the Fed would probably say it plans to buy at least $500 billion of Treasury bills.

The US dollar exchange rate against the euro fell to $1.4 a euro this morning, from $1.39 yesterday, but it failed to raise gold prices amid investors’ cautiousness.

SPDR Gold Trust, the largest exchange-traded fund backed by bullion, sold 0.9 metric tons, reducing its holdings to 1,292.2 metric tons, the company’s website showed.

Light sweet crude oil for December settlement surged $0.95 a barrel to $83.9 a barrel on the New York Mercantile Exchange.

This morning, crude oil emerged to above $84.3 a barrel.

By Thuy Doan

Other news