Gold gains as dollar drop boosts demand

Gold prices surged VND50,000 a tael (37.5 grams) to VND20.80 million on July 14 as global prices climbed after a weakening dollar boosted demand for alternative assets.

At Phu Quy Jewelry Co., SJC gold was sold at VND20.79 million and bought at VND20.74 million.

Phu Nhuan Jewelry (PNJ) Co. sold the metal at VND20.78 million and bought it at VND20.73 million.

A PNJ spokesperson said 800 taels were bought and 900 taels sold, with buying by retail investors increasing sharply.

At the SBJ gold exchange, the price was VND19.53-19.73 million as more than 224,000 taels were traded.

Globally, bullion for spot delivery gained $7.8 an ounce, or 0.9 percent, to $921.8 an ounce.

Globally, gold futures for August delivery advanced by $10, or 1.1 percent, to $922.50 an ounce on the New York Mercantile Exchange. Last week the metal futures lost up to 2 percent, the largest decline in a month.

In Asia, gold fell by $2.5 from the New York closing price to $919.3 an ounce.

Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, was unchanged at 1,109.81 metric tons as of July 10, the company’s website showed.

The greenback fell as much as 0.2 percent against the euro as a report by the US government showed the budget deficit reaching $94.3 billion in June, much higher than forecast. The dollar’s decline has increased the attraction for gold and oil.

Bloomberg quoted Elaine Tanner, an analyst at Credit Suisse Group AG in Zurich, as saying the dollar may be the most important driver in the gold market.

Positive economic information from Asia on July 14 helped crude oil hit $60 a barrel again.

In New York, crude oil for August delivery rose 66 cents, or 1.1 percent, to $60.35 a barrel. Yesterday it fell 20 cents to $59.69, the lowest since May 19.

Compiled by Thuy Doan

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