Gold hikes on dollar’s debasement

Gold surged by VND150,000 a tael (1.2 ounces) than the previous day in Vietnam October 1, with the global price bouncing back to US$1,010 an ounce as the dollar declined, boosting the demand of the metal as an alternative asset.

At most gold shops, the metal was bought at VND22.25 million and sold at VND22.35 million.

Trading volume has improved with most customers buying as they expected bullion would recover quickly after making corrections.

On the SBJ trading floor, nearly 228,000 taels changed hands at VND21.40 million to VND21.69 million by 10am local time.

Globally, gold headed for its biggest advance in the last four weeks due to the greenback’s debasement.

In New York, spot gold rose as much as $16 an ounce, 1.6 percent, to $1,008.7 an ounce.

Gold futures for December delivery gained $14.9 an ounce, 1.5 percent, to $1,009.3 an ounce.

In Asia, the metal hovered around $1.007 an ounce this morning.

Gold price was also backed by heavy buying of exchange-traded funds.

Holdings at SPDR Gold Trust, the biggest gold-backed exchange-traded fund, increased by 1.22 metric tons to 1,095.33 tons, the firm’s website showed.

The US Dollar Index dropped 0.8 percent against a basket of six major currencies, sending the greenback exchange against the euro to nearly $1.47.

New signs of recovery from Asia have also created more pressure on the greenback.

China’s manufacturing reportedly advanced for seven consecutive months.

Crude oil futures for November settlement climbed $3.9 a barrel, 5.9 percent, to close at $70.61 a barrel.

In Asia, crude oil fell but remained above $70 a barrel this morning.

Compiled by Thuy Doan

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