Gold declines on signs of economic recovery

Gold slid by VND250,000 a tael on December 23 in Vietnam as global prices continued to march south, prompting investors to seek the greenback as a high-yield asset.

Gold was bought at VND26.45 million and sold at VND26.55 million, fetching VND800,000 a tael higher than global prices.

A muted bullion market prompted jewelers to narrow the gap between selling and buying prices to around VND100,000 a tael despite global prices remaining on a downwards momentum.

Gold traders said low prices boosted buying volume but not significantly as customers remained cautious with movements of the precious metal.

On the SBJ trading floor, trading volume was significantly improved with 227,300 taels changing hands at VND23.96-24.56 million a tael by 12:30pm local time. The floor commission was at VND2.7 million a tael this morning.

Globally, gold sank to a seven-week low on speculation that an improving US economy would enhance greenback’s strength and erode demand for the metal as an alternative investment.

Spot gold fell as much as US$8.1 an ounce, 0.7 percent, to $1,084.2 on the New York Mercantile Exchange. Earlier, the metal dropped to $1,073.

In Asia, gold rose slightly to $1,085-1,087 an ounce this morning.

A stronger dollar continued to be the main pressure on the debasement of bullion.

Positive information about the US real estate market yesterday supported the US currency.

According to the National Association of Realtors, sales of existing US homes in November rose by 7.4 percent to 6.54 million annual rate, exceeding economists’ highest estimate of 6.25 million.

Meanwhile, the euro exchange rate fell further as Moody’s Investors Service cut Greece’s credit rating by one step to A2, increasing concerns on debt crisis.

The dollar exchange rate was at below $1.43 a euro this morning.

The price of crude oil rose on signs of US economic recovery.

Crude oil futures for February settlement was traded at $74.4 a barrel, the highest level since December 4.

The OPEC said it continued to keep production at 24.845 million barrels a day during a meeting in Luanda, Angola yesterday.

Compiled by Thuy Doan

Other news