Gold retreats on profit-taking

The gold price in Vietnam fell by VND200,000 a tael (1.2 ounces) September 18 from its all time high of VND22.5 million a tael made last evening after global prices made a slight correction.

Bullion was bought at VND22.25 million and sold at VND22.3 million.

Domestic gold price touched a new record high of VND22.50 million a tael last evening as global prices hit a 18-month high of US$1,025 an ounce. This level, however, soon disappeared as global prices declined due to profit-taking.

Trading volume was reported to be extremely high yesterday with most customers selling gold to take profits.

Saigon Jewelry’s Hanoi branch bought 5,000 taels by 6pm local time.

Phu Nhuan Jewelry said yesterday’s trading volume was 30 percent higher than of the peak time last week. The firm bought 2,600 taels and sold nearly 2,700 taels.

On the SBJ trading floor, matching prices was around VND21.75 to VND21.91 million with nearly 266,000 taels changing hands by 10:35am local time.

Globally, the metal moved wildly in a range between $1,009 to $1,021 an ounce due to profit-taking and the dollar’s recovery.

In New York, spot gold fell by $5 an ounce, 0.5 percent, to $1,013.3 an ounce.

Gold futures for December delivery fell $6.70, 0.7 percent, to $1,013.50 an ounce.

In Asia, the precious metal fluctuated around $1,013 an ounce this morning.

The US Dollar Index, which tracks the greenback’s value against a basket of six major currencies, slightly rose to 76.266.

The dollar exchange rate against the euro was $1.4736 at 9:35am in Tokyo, up from $1.4741 yesterday in New York. It reached $1.4767 yesterday, the weakest level since September 25 last year.

Pressures on the debasement of the greenback remained as positive economic information prompted investors to seek other low risk and high-yielding investment channels.

Crude oil futures for October delivery dropped $0.04 a barrel to close at $72.47 a barrel on the New York Mercantile Exchange.

Brent crude oil for November settlement traded at $71.50 a barrel, down five cents in London.

Compiled by Thuy Doan

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