Gold hits new high at VND47.5 million

The price of gold in Vietnam topped a record high at VND47.5 million per tael (1.2 ounces) on August 19 as global price soared to nearly US$1,870 an ounce in the trading session in Europe.

Sacombank Jewelry Company bought gold at VND47.11 million and sold at VND47.39 million as of 3 pm local time, an increase of VND2 million a tael over the previous day.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND47.1 million and sold at VND47.5 million at the same time.

This week, the metal has gained VND3.2 million per tael with support mainly from rising trend on global markets.

Domestically, gold fetched around VND400,000-500,000 a tael higher than global price.

State-owned Vietcombank continued to buy the greenback at VND20,800 and sell at VND20,824. Meanwhile, on free market, dollars fairly rose. The greenback was bought at VND20,880, and sold at VND20,930, a rise of VND50 in buying price and VND60 in selling price over the previous day.

Internationally, gold rose to a record at nearly $1,870 an ounce in London, poised for the longest run of weekly gains since April 2007, as escalating concern that the global economy is slowing drove equities lower.

The metal is set for a seventh weekly advance as worse- than-expected US economic data and Europe’s debt crisis boost speculation that growth will falter.

Gold for immediate delivery climbed as much as $35.9 an ounce over the previous trading session, or 2.1 percent, to close at $1,825.9 an ounce on the Comex in New York.

Spot gold gained more than $40 an ounce over the closing price in New York to trade at $1,866.7 an ounce at 3:15 pm Vietnamese time.

Statistics showed that manufacturing in some regions in the US and existing home sales sharply fell, increasing concern that the world’s largest economy is faltering.

Citigroup Inc. cut the US economic growth forecast for this year to 1.6 percent from 1.7 percent, and lowered its projection for the next year to 2.1 percent from 2.7 percent. Morgan Stanley also cut its forecast for global growth in 2011 and said the US and Europe are dangerously close to recession.

Global stocks dropped today, European shares suffered their biggest two-day slump since 2008 and oil sank below $80 a barrel on concern the recovery in the world’s largest economy is faltering and Europe’s debt crisis will worsen.

SPDR Gold Trust, the largest exchange traded fund backed by bullion, continued raised its holdings by 1 percent to 1,286.8 metric tons, the company’s website showed.

The euro exchange rate against the greenback receded to below $1.43.

Crude oil futures for September delivery lost as much as $5.2 a barrel, or 5.9 percent, to close at $82.38 a barrel on the New York Mercantile Exchange.

Crude oil sank nearly $3 a barrel over the closing price in New York to trade at just above $79 a barrel at 3:25 pm Vietnamese time.

By Uyen Nhi

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