Gold closes week on bright note

Gold surged by VND200,000 a tael in Vietnam on December 19, following a slight recovery of prices on the international market.

Saigon Jewelry, the biggest gold shop in Vietnam, bought gold at VND27 million and sold at VND27.1 million.

Sacombank Jewelry purchased gold at VND26.96 million and sold at VND27.2 million.

Trading volume remained muted as the role of the metal as a high-yielding asset had been weakened.

On the SBJ trading floor, volume was fairly thin with 111,960 taels changing hands at VND24.595-24.84 million a tael by 11:45am local time.

Globally, gold gained as the dollar stalled, prompting investors to seek the precious metal as an alternative investment. The yellow metal made a significant advance from a low level of $1,097 an ounce to around $1,110 an ounce.

Gold for January settlement rose $4 an ounce to $1,110.8, for February delivery gained $4.1 an ounce to $1,111.5 on the New York Mercantile Exchange.

In Asia, the metal climbed to $1,112.4 this morning.

However, bullion was expected to drop to $1,080 an ounce as depreciation pressure remained on it.

SPDR Gold Trust bought 6.097 metric tons of gold yesterday, sending its holdings to 1,126.611 metric tons.

This movement of the world’s largest gold-backed exchange-traded fund was expected to be an effective factor that would support the prices of gold next week.

Positive information from the international market continued to back the US currency.

The dollar exchange rate against the euro was at $1.43.

Crude oil futures for February settlement gained 34 cents to $74.42 a barrel after reports that Iranian forces entered Iraqi territory and surrounded a well.

Compiled by Thuy Doan

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