Gold climbs to 10-month high

The price of gold in Vietnam spiked to the highest level since November last year on August 20, backed by a steady growth of global price, and a rising dollar exchange rate against the Vietnamese dong.

Bullion was bought at VND28.8 million and sold at VND28.85 million, an increase of VND100,000 a tael over the previous day. The metal hit a record high VND29.3 million on November 11 last year when prices jumped to VND29 million from VND27 million in just a few hours.

Trading on bullion market improved after being muted for nearly two months. However, according to gold traders, big investors have not participated in trading as they expect prices to climb higher.

Although prices were standing at the highest level in the past 10 months, domestic gold prices remained cheaper than global prices. In addition, global prices are on rising trend, creating good conditions for exporting gold.

The metal has gained VND700,000 a tael this week.

The dollar exchange rate on free market continued to surge this morning. Some foreign currency exchange offices purchased dollars at VND19,500, up VND60 per dollar, and sold at VND19,520, up VND20-30 per dollar.

Internationally, gold sprang to the highest level in seven weeks as investors shifted their investments to the metal amid concern over increasing jobless claims in the world’s largest economy.

Spot gold rose US$3.1 an ounce, or 0.3 percent, to close at $1,233.4 an ounce in New York. Earlier, the metal touched $1,240.

This morning, prices slightly dropped to $1,232 an ounce due to profit-taking.

A report by the US Labor Department said that initial jobless claims for the week that ended August 14 suddenly climbed by 12,000 to 500,000, the highest level in the past nine months.

Meanwhile, manufacturing in the Philadelphia region shrank for the first time in a year. Asian equities declined today.

According to international analysts, gold may top $1,265 an ounce once again.

Holdings at SPDR Gold Trust increased by 3.95 metric tons to 1,299.47 metric tons as of August 19, figures on the company’s website showed. The company had bought 12.8 metric tons in the past three days.

The euro exchange rate against the US dollar almost unchanged as of yesterday.

Crude oil futures for September delivery slid $0.99 a barrel, or 1.3 percent, to $74.43 a barrel.

This morning, the liquid was trading at nearly $74.5 a barrel.

By Kha Lam

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