Gold drops as dollar rebounds

Gold prices in Vietnam fell by VND50,000 a tael (1.2 ounces) from the previous day to VND21.25 million on August 25 as global prices lost 1.2 percent last night.

Gold was bought at VND21.20 million and sold at VND21.25 million at most gold shops, fetching VND250,000 a tael more than global prices .

Trading on the bullion market remained muted with high bullion prices acting as a deterrent.

However, with the rising demand for wedding jewelries, trading at most jewelers has improved compared to last month.

On the SBJ trading floor, matching prices swung around VND20.3-20.55 million a tael with more than 342,000 taels changing hands by 10am local time.

Globally, the metal dropped by US$11.5 an ounce, 1.2 percent, from the previous session, to close at $943.2 an ounce due to the greenback’s recovery against other currencies.

In Asia, spot gold rose to $945-946 an ounce this morning.

Bloomberg quoted a report from BNP Paribas SA as saying: “Considerable volatility has marked the gold price in August, shifting between almost $970 and $930 in the space of a few days. This volatility is mostly dollar-driven, with the currency markets undecided between a dollar collapse and a dollar revival. Physical demand remains weak.”

The Dollar Index, which tracks the greenback against a trade-weighted basket of six major currencies, gained, sending the dollar exchange rate against the euro to just below $1.43.

Optimism about the global economic rebound has pushed up crude oil prices despite the US’s stock markets’ slide.

Crude oil futures for October delivery rose as much as $0.48 a barrel to $74.37 a barrel on the New York Mercantile Exchange.

The State Bank of Vietnam fixed the dollar exchange rate at VND16,972, VND2 higher than previous day. The state-owned Vietcombank traded the greenback at VND17,821.

Compiled by Thuy Doan

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