Gold jumps as dollar drops

Gold price in Vietnam suddenly bounced VND100,000 a tael (1.2 ounces) more than the previous day on August 22 as the global price rose by 1.4 percent, boosting demand for the precious metal as an alternative investment.

Most gold shops fixed prices at VND21.25 million (US$1,148.6) for buying and VND21.30 million ($1,151.3) for selling.

However, gold traders did not expect that this movement of bullion would improve the trading volume on the market.

Bullion must advance much further to boost selling volume or fall below VND21 million to improve buying, a gold trader said.

The price was around VND70,000 a tael higher compared to last week.

Globally, gold gained unexpectedly on a demand for a hedge against inflation amid rising energy costs.

In New York, gold for immediate delivery rose US$12.9 an ounce, 1.4 percent, to close at $954.7 an ounce, the highest level within the last month.

In comparison to last weekend, spot gold climbed by 0.6 percent.

Investors remained wary as the pressure on the metal’s prices still existed. With the global financial crisis easing in many countries, the attraction of high-rate currencies may be enhanced, pushing down the dollar rate and supporting the bullion price.

The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, made its first purchase after selling for nearly two months, increasing its holdings to 1,066.41 tons from 1,065.49.

The US dollar index, a six-currency gauge of the greenback’s value, fell despite positive information from the US’s economy.

A report showed that unexpected growth in German services and French manufacturing this month hooked the euro exchange against dollar by 0.5 percent.

The dollar exchange rate was at a little above $1.43 a euro in New York.

According to Bloomberg, the dollar lost 0.9 percent compared to the euro this week.

Crude oil topped a ten-month high on optimistic real estate and stock markets.

Crude oil futures for October delivery hiked $0.98 a barrel, 1.3 percent, to $73.89, the highest level since October 20, 2008.

Data from National Association of Realtors showed sales of existing US homes jumped 7.2 percent year on year, the highest since August 2007. This information has sent the S&P 500 index to its highest level since October.

Crude oil futures for October delivery gained 6.2 percent this week and 66 percent compared to the beginning of this year.

Compiled by Thuy Doan

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