Gold peaks new high

The price of gold in Vietnam jumped by VND1.2 million a tael (1.2 ounces) over the previous day to trade at an all-time high of VND35 million a tael on November 5 as global prices climbed to record on the greenback’s debasement.

Saigon Jewelry Co. bought gold at VND34.8 million and sold at VND34.95 million as of 9:30 am local time.

Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND34.73 and sold at VND35 million a tael as of 10 am.

Most jewelers extended the trading gap between buying and selling prices to VND200,000-300,000 a tael to prevent risk.

Trading on bullion market, however, became muted as high prices discouraged most buyers.

The dollar exchange rate against the Vietnamese dong on free market cooled down as the State Bank of Vietnam announced that it would pump more dollars to support liquidity on the market today. Dollars were bought at VND20,400-20,500 and sold at VND20,700.

Internationally, gold rocketed to a record high as the US dollar declined due to plans by the Federal Reserve to buy more debt, spurring the demand for the metal as an alternative asset.

Gold surpassed US$1,360 an ounce in the trading session in London.

Rising momentum was extended in the trading session in New York. Bullion rallied the most in the past two years, adding $44.1 an ounce, or 3.3 percent, to close at $1,393.9 an ounce. Earlier, the metal touched $1,394.6 an ounce.

In Asia, gold retreated due to profit-taking. Gold for immediate delivery slid more than $6 an ounce to trade at $1,387.8 an ounce as of 8:25 am Vietnamese time.

The greenback tumbled after the US Federal Reserve announced that it would spend $600 billion for asset-purchase program to boost economic recovery.

The US Dollar Index, which tracks the greenback’s strength against a basket of six major currencies, sank to the lowest level in 11 months. The US dollar exchange rate against the euro some time fell to near $1.43, the lowest level since January, before recovering to $1.42 a euro this morning in Tokyo.

Despite a sharp rise in gold prices, holdings at SPDR Gold Trust, the world’s largest exchange traded fund backed by bullion, remained at 1,292.2 metric tons.

Crude oil advanced for four straight trading sessions, surging to the seven-month high. Crude oil futures for December delivery rose as much as $1.8 a barrel, or 2 percent, to close at $86.49 a barrel.

Crude oil has gained 6.2 percent this week.

This morning, crude oil was traded above $86.49 a barrel.

By Thuy Doan

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