Gold regains its sparkle

After two consecutive gains, global gold price hit US$1,200 an ounce again, sending the domestic price to VND27.8 million a tael (1.2 ounces) on May 26.

The price of gold in Vietnam was fixed at VND27.7 million for buying and VND27.8 million for selling, surging by VND250,000-290,000 a tael.

This morning, the precious metal severely accelerated to approach the VND28 million mark, which it lost last week.

Trading volume showed signs of recovery as high prices spurred investors’ selling demand. The market saw most investors go to gold shop to sell, especially jewelries.

Meanwhile, the US dollar exchange rate on free market slightly fell this morning. A dollar was bought at VND18,960 and sold at VND19,010, a decrease of VND10 per dollar.

At commercial banks, the rate remained at the same level as that of yesterday.

Internationally, the metal advanced for a third day as investors sought a haven from escalating military tension on the Korean peninsula and Europe’s fiscal crisis.

Gold for immediate delivery rose as much as $8.9 an ounce, or 0.8 percent, to close at $1,202.2, the highest level in the past week.

Bullion futures for June settlement also gained $4 an ounce to $1,198.

Holdings at SPDR Gold Trust, the world’s biggest gold-backed exchange-traded fund, increased by 30.43 metric tons to an all-time high of 1,267.32 metric tons.

In Asia, the yellow metal fluctuated between $1,202 and $1,204 this morning.

The euro slid for the third straight day over concern that Europe’s governmental debt crisis has yet to run its course. US Treasury Secretary Timothy Geithner commented yesterday that Europe must revamp its fiscal policies to avoid deepening the crisis.

The euro exchange rate against the US dollar fell to $1.23 a euro in Tokyo this morning from $1.24 in New York yesterday.

Crude oil futures for July delivery closed at $68.75 a barrel, down $1.46. However, the price climbed to around $70 a barrel after the US Government announced its oil reserves dropped.

Compiled by Moc Lan

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