Gold rebounds as investors look for safer investments

Gold prices in Vietnam made a leap to VND21.50 million a tael (1.2 ounces) on September 3 as global price rose by 2.2 percent last night, boosting the demand of the precious metal as a store of value.

At most gold shops, bullion was bought at VND21.45 million and sold at VND21.50 million, VND100,000 a tael higher than the previous day.

Domestic gold price was fetching VND100,000 a tael lower than the global price after a long time taking the upper hand.

Gloomy trading on the bullion market has prevented domestic prices from following strong advances in the global price.

Trading may become more muted at this high level, a gold trader said. However, jewelers would not be affected.

Trading volume for jewelries remained fairly high, as it has entered the wedding season.

On the SBJ gold exchange, trading volume sharply hiked as investors took advantage of waves on the global bullion market.

Nearly 414,000 taels changed hands at VND20.35 to 20.97 million by 9:45am local time.

Globally, gold gained the most in six months as slumping global equity markets and a weakening US dollar spurred demand for the precious metal as an alternative investment.

Spot gold rose as much as $21.4 an ounce, 2.2 percent, to close at $979.6 an ounce.

In Asia, spot gold slightly declined to around $977 an ounce this morning.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, made its first buying after selling for three months, sending its holdings to 1,063.36 tons from 1,061.83 tons, the company’s website showed.

Gold has regained its appeal as a safe investment channel. The metal needs to cross the psychological support of $1,000 an ounce in the next days.

The US Dollar Index, a six-currency gauge of the greenback’s strength, fell as much as 0.6 percent.

The dollar exchange rate against the euro was at nearly $1.43.

Crude oil closed the trading sessions at yesterday’s closing price for the first time since November 24, 2006 due to a pressure from slumping global stock markets.

Fortunately, a report by the US Energy Department said that the country’s fuel consumption last month reached 19.3 million barrels a day, a rise of 0.1 percent year on year, has backed the crude oil price.

Crude oil futures for October delivery was steady at $68.05 a barrel on the New York Mercantile Exchange.

The State Bank of Vietnam announced the dollar exchange rate at VND16,977. Stated-owned Vietcombank traded the dollar at VND17,826.

Compiled by Thuy Doan

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