Gold, oil updates

Bullion in Vietnam fell by VND70,000 a tael (1.2 ounces) September 1 as global prices dropped the most in a week, cutting demand for the precious metal as an alternative asset.

Gold was bought at VND21.20 million and sold at just above VND21.25 million at most gold shops.

The VND21 million mark has showed its durableness as the global price has not made any remarkable leap but has fluctuated within a narrow range.

High prices continued to act as deterrents preventing investors from buying.

It was reported that many investors have shifted to other high-yielding assets, like stocks and real estate.

Trading on gold exchanges did not see any sudden increases but remained on a fairly high level.

On the SBJ trading floor, nearly 308,000 taels were traded at VND20.32 to 20.53 million by 10am local time.

Globally, gold declined as crude oil and global equity markets dropped, eroding the demand for the metal as a hedge against inflation.

Spot gold fell as much as $4.7 an ounce, 0.5 percent, to close at $951.9 an ounce in New York.

In Asia, the metal hovered around $952 an ounce this morning.

The metal, up 7.8 percent this year, dropped 0.2 percent in August.

Crude oil slid the most in two weeks as Chinese equities led a global slump following a report that the nation’s banks cut lending. China accounts for about a 10th of global crude oil use, according to BP data.

Ending the trading session in New York, crude oil futures for October delivery lost $2.74 a barrel, 3.8 percent, to $69.96 a barrel.

The dollar exchange rate against the euro remained just above $1.43.

The State Bank of Vietnam fixed dollar exchange rate at VND16,976. At Vietcombank, dollar was traded at VND17,825.

Compiled by Thuy Doan

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