Gold revives on weaker dollar

The price of gold in Vietnam recovered to VND35.7 million a tael (1.2 ounces) on January 19 as global prices temporarily put an end to its losing trend.

Gold was bought at nearly VND35.65 million and sold around VND35.7 million, an increase of VND100,000 a tael over the previous day, at most gold shops as of 10 am local time.

Sacombank Jewelery Company bought gold at VND35.64 million and sold at VND35.68 million.

At the same time, Saigon Jewelry Co. purchased the metal at VND35.64 million and sold at VND35.7 million.

Meanwhile, Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND35.64 million and sold at VND35.73 million.

Gold was bought at VND35.65 million and sold at VND35.74 million at Bao Tin Minh Chau.

The precious metal was standing at the highest level in the past 5 days. However, it declined by VND600,000 a tael over the beginning of this year.

The US dollar exchange rate continued to drop on free market this morning. Dollars were bought at VND20,970 and sold at VND21,000, a decrease of VND60 per dollar over the previous day.

Internationally, gold rallied as a weakening US dollar boosted the demand for the metal as an alternative asset.

Gold for immediate delivery rose as much as US$6.2 an ounce, or 0.5 percent, to $1,368.7 an ounce on the Comex in New York.

In Asia, the metal advanced nearly $5 an ounce to trade above $1,373 an ounce as of 10 am Vietnamese time due to physical buying demand.

The euro exchange rate against the US dollar jumped to one-month high after statistics showed that German investors became more optimistic about the economic situation, and expected a rise in euro interest rate in July this year.

The greenback exchange rate against the euro fell to $1.34 a euro in Tokyo this morning from $1.33 the previous day.

Gains in the euro were tempered on speculation European policy makers will delay efforts to provide more funds for debt- strapped countries.

SPDR Gold Trust, the largest exchange-traded fund backed by bullion, sold more than 2.4 metric tons, reducing its holdings to 1,256.9 metric tons, the company’s website showed.

Crude oil futures for February delivery slid $0.16 a barrel to trade at $91.38 a barrel in the New York Mercantile Exchange, the lowest level in one week, after the International Energy Agency said that global crude oil supply was fairly stable.

Crude oil slightly recovered to around $91.5 a barrel this morning.

By Thuy Doan

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