Gold climbs over bad news

 
The price of gold in Vietnam surpassed VND36 million a tael (1.2 ounces) on November 24. Global prices rocketed up as escalating tensions on the Korean peninsula prompted investors to seek the precious metal as a safer asset.

Most gold shops traded the metal at VND36 million, an increase of VND250,000 a tael over the previous day.

Saigon Jewelry Co., the biggest gold shop in Vietnam, bought the metal at VND35.85 million and sold at VND35.92 million.

At Sacombank Jewelry Co., the metal was bought at VND35.91 million and sold at VND36.04 million.

Meanwhile, the Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND35.88 million and sold at VND36 million.

Internationally, gold climbed to the highest level in the past seven trading sessions amid rising concerns over the European debt crisis and tensions between North and South Korea.

Yesterday North Korea fired artillery shells at the South Korean island of Yeonpyeong near the disputed border between the two countries in the worst attack in at least eight months.

Meanwhile, in Europe, Standard & Poor’s downgraded debt ratings of Ireland to A. Earlier, Moody’s announced that Ireland might face a higher downgrade. Observers concerned that the plan to rescue Ireland of the European Union and the International Monetary Fund would fail to damp the crisis.

In addition, the US National Association of Realtors said sales of existing homes fell more than forecast in October.

Gold for immediate delivery rose as much as $10.1 an ounce, or 0.7 percent, to close at $1,377.5 an ounce on the Comex in New York. Earlier, gold hit $1,383.5 an ounce, a seven-trading-session high.

Gold futures for December delivery gained 1.5 percent to close at $1,377.6 an ounce.

In Asia, gold slightly dropped on a stronger dollar this morning. Spot gold was traded at $1,372 an ounce as of 8:20 am Vietnamese time.

The US dollar strengthened more than 1 percent against a basket of major currencies. The euro exchange rate versus the greenback fell to $1.34 this morning in Tokyo from $1.36 the previous day.

By Thuy Doan

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