Gold climbs again on weaker dollar

Domestic gold price surged by VND100,000 a tael (1.2 ounces) on September 16 as globally gold traded above US$1,000 an ounce as the dollar declined, bolstering the demand of the metal as a hedge against inflation.

Gold was bought at VND22.1 million and sold at above VND22.15 million at most gold shops.

Trade gap between selling and buying prices rose to more than VND100,000 this morning from VND50,000 yesterday.

Gold traders were expecting this movement of bullion would again bring heat back to the bullion market.

A representative of Phu Nhuan Jewelry said it sold just more than 1,000 taels and bought nearly 1,000 taels yesterday.

On the SBJ trading floor, 278,000 taels were traded at VND21.35 to VND21.71 million by 8:50am local time.

In New York, spot gold rose as much as $7.6 an ounce, 0.8 percent, to $1,008.2, the highest closing price in its history.

Gold futures for December settlement advanced $5.2 an ounce, 0.5 percent, to $1,006.3 an ounce.

In Asia, gold was traded at $1,009 an ounce at 10:35am Vietnamese time.

The US Dollar Index, which tracks the greenback’s strength against a basket of six major currencies, dropped to this year’s low.

The dollar exchange rate against the euro slid to near $1.47.

The economic information announced by the US yesterday eroded the greenback’s appeal as a high-safety investment channel.

The US Department of Trade said retail sales increased by 2.7 percent last month, after falling by 0.2 percent in July. The Labor Department announced that the producer price index surged by 1.7 percent last month as gasoline prices sharply hiked.

Crude oil for October delivery gained $2.07 a barrel, three percent, to close at $70.93 a barrel on the New York Mercantile Exchange.

Compiled by Thuy Doan

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