Gold regains its shine

Gold price in Vietnam rose by VND120,000 a tael (1.2 ounces) more than the previous day to hit the VND22 million mark again on September 12 as global prices returned to its upward momentum.

Gold was bought at VND22 million and sold at VND22.1 million at most gold shops.

Domestic gold prices surged by VND350,000 a tael this week, fetching VND100,000 a tael lower than the global price.

The metal fluctuated and broke its record price this week. It hit an all-time high of VND22.22 million on September 8.

As the prices sharply rose after a long time hovering around VND21 million, trading volume on the bullion market has improved significantly.

Globally, bullion climbed to an 18-month high on a weaker US dollar extending its longest slip in six months, boosting the demand of the metal as a hedge against inflation.

In New York, spot gold gained as much as $8.7 an ounce, 0.9 percent, to $1,006.1 an ounce.

Gold futures for December settlement rose by $9.6 an ounce, one percent, to $1,006.4 an ounce.

Earlier, the metal touched $1,013.17 an ounce, the highest price for a most active contract since March 17, 2008, when gold reached a record of $1,033.9 an ounce in New York.

The price for immediate delivery advanced $10.6 an ounce, 1.1 percent more than last weekend. The metal has climbed for four straight weeks. It rose by 4.1 percent last week.

The metal was supported by the debasement of the dollar, buying of major exchange-traded funds, and rallied crude oil prices.

The US Dollar Index, which tracks the greenback against a trade-weighted basket of six major currencies, slid for a sixth consecutive session, the longest slump since March, to an 11-month low.

This week, the index fell by two percent to 76.608, sending the dollar exchange rate against the euro to nearly $1.46.

The greenback was dropping due to the large amount of money that the US government has pumped into its economy. In addition, signs of global economic recovery have also eroded the greenback’s appeal as a high-safety asset.

Michigan University and Reuters announced the US’s customer trust index in September rose to 70.02 from 65.7 last month.

Crude oil for October delivery declined $2.65 a barrel, 3.7 percent, to 69.29 a barrel. Earlier, it climbed to $72.9 a barrel, the highest level since the beginning of this month, but failed to cross the resistance as investors sold to take profits.

Crude oil, however, advanced 1.9 percent this week after falling for two consecutive weeks.

Compiled by Thuy Doan

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