Gold hovers at record

The price of gold in Vietnam stalled at an all-time high set on last Saturday on November 1 as global prices were almost unchanged ahead of the US Federal’s meeting.

Gold was bought at VND33.35 million and sold at nearly VND33.45 million this morning, an increase of VND10,000-20,000 a tael over last weekend in buying price and a decrease of VND10.000-20,000 a tael in selling price.

Domestically, gold hit a record high of VND33.45 million a tael on October 30.

Sacombank Jewelry Company bought gold at VND33.38 million and sold at VND33.42 million at 8:25 am local time.

Saigon Jewelry Company fixed the prices at VND33.37 million for buying and VND33.42 million for selling since 8:08 am.

Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND33.36 million and sold at VND33.44 million at 9 am.

At the same time, gold was traded at the same level at Bao Tin Minh Chau Jewelry.

The dollar exchange rate against the Vietnamese dong continued to escalate on free market. Dollars were bought at VND20,450 and sold at VND20,490, an increase of VND20-30 per dollar over last Friday.

Internationally, gold faintly fluctuated as investors showed cautiousness before Fed’s meeting on November 2-3.

Gold for immediate delivery traded below $1,359 an ounce as of 9:40 am Vietnamese time, a fall of more than $2 an ounce over the closing price in New York last weekend. The metal some time jumped to $1,365 an ounce, the highest level in the past two weeks, then reversed quickly.

Estimates for the size of the asset-purchase program were different, ranging from $100-200 billion to $2 trillion. However, most experts expected a $500 billion plan. If the stimulus package is smaller than this number, the US currency will probably recover, causing depreciation pressure on the metal.

Meanwhile, the precious was backed by buying demand from Asian countries, including China and India. In addition, in long term, gold was supported by a faltering economic recovery and loose monetary policies of major central banks.

Gold has advanced 23 percent this year, heading for a tenth annually gain.

In particularly, spot gold soared 3.8 percent last month in New York.

The euro exchange rate against the greenback was at $1.4 a euro in Tokyo this morning.

Crude oil futures for December settlement rose by $0.4 a barrel to trade above $81.8 a barrel by 10 am Vietnamese time.

By Thuy Doan

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