Gold, oil rallies as dollar plunges

Gold prices in Vietnam rose as much as VND100,000 a tael (1.2 ounces) more than the previous day August 28 as global prices slightly advanced.

Saigon Jewelry bought gold at VND21.21 million and sold at VND21.26 million.

At Sacombank, gold was bought at VND21.22 million and sold at VND21.30 million.

Domestic gold prices surged by VND50,000-100,000 a tael, depending on the brand, fetching VND100,000-150,000 a tael higher than global prices.

Most gold shops remain poorly patronized, as investors saw low profits but high risk to pump money into the bullion market at this moment.

Meanwhile, heat has returned to the gold exchanges.

On the SBJ trading floor, trading volume was fairly high this morning with more than 400,000 taels changing hands at VND20.25-20.41 million by 9:50am local time.

Globally, bullion advanced for three straight sessions as the US dollar retreated, boosting demand for the metal as an alternative asset.

Spot gold surged $2.7 an ounce, 0.3 percent, to close at $949.2 an ounce in New York.

In Asia, the metal continued to climb to around $950-951 an ounce.

The US Dollar Index, which tracks the greenback against a trade-weighted basket of six major currencies, dropped as the Euro-zone economy continued to show positive signals, sending the dollar exchange rate against the euro to nearly $1.44.

As the economy is pulling out of recession, investors are paying more attention to high-yielding currencies.

The US’s gross domestic product shrank at a one percent annual rate in the second quarter, up from 5.5 percent in first quarter, a US Commerce Department report showed.

Crude oil prices rebounded as the US’s stock markets rallied and dollar declined.

Crude oil futures for October delivery advanced as much as $1.06 a barrel, 1.5 percent, to $72.49 a barrel.

Brent crude for October settlement rose 86 cents, 1.2 percent, to $72.51 a barrel.

The State Bank of Vietnam fixed dollar exchange rate at VND16,972, VND1 lower than the previous day. The state-owned Vietcombank traded the dollar at VND17,821.

Compiled by Thuy Doan

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