Gold declines as stronger dollar curbs demand

Gold fell slightly by VND20,000 a tael (1.2 ounces) to around VND21.20 million in Vietnam on August 21 as global gold price snapped a two-day rally.

Phu Nhuan Jewelry bought gold at VND21.14 million a tael and sold at VND21.18 million.

At Sacombank Jewelry the metal was traded at VND21.16 million.

The Hanoi-based gold dealer, Bao Tin Minh Chau purchased gold at VND21.14 million and sold at VND21.20 million.

Most jewelers said they are focusing on the jewelry market, which will improve with the approaching wedding season. Many new collections, as well as special promotions, have been offered to couples.

Meanwhile, despite selling and buying prices were fixed at a narrow gap, investors remained apprehensive with a high price acting as a deterrent.

On the SBJ trading floor, the total trading volume reached above 350,000 taels with matching prices changing around VND20.10-20.29 million by 10am local time.

The floor’s commission was applied at VND1 million a tael.

Globally, bullion failed to maintain the rising trend of the two previous sessions, as a stronger US dollar curbed demand for the precious metal as a store of value.

In New York, spot gold dropped by 70 cents to $941.8 an ounce. The prices earlier swung in a narrow range of $936.6-944.1 an ounce.

In Asia, the metal slid to just above $940 an ounce this morning.

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, remained unchanged at 1,065.49 tons, the company’s website showed.

According to analysts, factors causing the pressure on bullion prices were still taking the upper hand.

The dollar exchange rate against the euro fell by up to 0.2 percent but stayed above $1.42 a euro.

Crude oil prices advanced a third day, supported by three consecutive rises of the US’s stock markets.

Crude oil futures for September delivery gained 12 cents to $72.54 a barrel.

Crude oil futures for October delivery, the most-active contract, fell by $0.92 a barrel, 1.3 percent, to $72.91 a barrel on the New York Mercantile Exchange.

Compiled by Thuy Doan

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