Gold rebounds as dollar weakens

Gold prices in Vietnam rose VND30,000 a tael (1.2 ounces) on July 23 as global prices edged up.

At most gold shops, the metal was sold at VND21.18 million and bought at VND21.12 million though trading volumes remained low.

Sacombank Jewelry Co. said trading would only improve after gold breaks out of the VND20.80 million-21.20 million range.

Trading also became muted on the SBJ gold exchange with 186,000 taels traded at VND20.30 million-20.50 million, just half the previous day’s volume.

Globally, the metal rose as the dollar weakened.

Spot gold gained as much as US$2.1, or 0.2 percent, to close at $952.1 an ounce. Gold futures for August delivery advanced $6.40, or 0.7 percent, to $953.30 an ounce on the New York Mercantile Exchange.

Bullion for immediate delivery in London rose $2.42, or 0.3 percent, to $950.92 an ounce.

The US Dollar Index, a six-currency gauge of the greenback’s value, fell as the Federal Reserve Chairman Ben S. Bernanke reaffirmed a plan to keep benchmark US lending rates at historic lows for an “extended period.”

Bullion, however, could not advance further due to Bernanke’s comment on low inflationary pressures, limiting the role of the yellow metal as a hedge against accelerating prices.

Gold holdings at SPDR Gold Trust, the world’s biggest exchange-traded fund backed by bullion, fell to 1,086.61 tons after the company sold 5.49 tons on July 22. It has been mainly selling in the last two months.

Crude oil slipped due to a slump in the US stock markets and information about high oil reserves.

The price of crude oil for September delivery dropped by $0.21, or 0.3 percent, to $65.4 a barrel in New York.

A report by the US Department of Energy showed gasoline reserves rose by 813,000 barrels last week to 215.4 million barrels, the highest level since mid-April.

The dong’s exchange rate against the dollar fixed by the State Bank of Vietnam was up VND2 to VND16,965. State-owned Vietcombank traded the greenback at VND17,813.

Compiled by Thuy Doan

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