Gold, oil climb as dollar slumps

Domestic gold prices surged VND150,000 a tael (1.2 ounces) to hit the VND21 million mark again as the US dollar continued to slide on July 16.

Most gold stores bought the metal at VND20.90 million ($1,173) and sold at VND21 million ($1,179).

The bullion market is expected to be frozen unless gold makes strong leaps forward in the next few days.

“Gold hasn’t showed any clear direction at the moment. Despite the global price being on a rising trend, investors remain wary and most are still attracted by the stock market,” said Duong Duc Hien, deputy general director of Phu Quy Jewelry.

Trading volume on the SBJ gold exchange was fairly high, with more than 300,000 taels being traded at around VND20.04-20.2 million a tael.

Global gold prices jumped the most in more than two months.

Gold for immediate delivery gained $14.2 an ounce, 1.5 percent, to close at $940.5 an ounce. That marks the biggest gain for a most-active contract since April 20.

The greenback lost its attraction, as the Federal Reserve yesterday raised its forecast about the US’s economic growth this year to minus 1-1.5 percent from minus 1.3-2 percent forecasted in May.

The exchange rate of the dollar against the euro was $1.41 a euro on the Tokyo market this morning.

In addition, a 17 percent jump in gasoline prices drove the US consumer price index up 0.7 percent in June, the fastest increase in a year, US Labor Department figures showed yesterday.

Oil strongly recovered as the US Department of Energy said the country’s oil reserve fell by 2.81 million barrels to 344.5 million barrels.

Crude oil for August delivery rose by $2.02 a barrel, 3.4 percent, to $61.54 a barrel.

Brent crude oil advanced by $2.33, 3.7 percent, to close at $63.09 a barrel.

Compiled by Thuy Doan

Other news