Gold sees small rise from month-low

Domestic gold recovered slightly on December 14 by VND150,000 a tael over last weekend as the global price rebounded. The resurgence came as investors sought a hedge to protect their wealth from the decline in equities and the greenback.

Bullion was bought at VND26.8 million and sold at VND26.95 million at most gold shops.

The VND27 million mark began declining in Vietnam last Saturday after global prices headed for the biggest weekly loss since February.

Gold traders said investors would buy heavily if the prices continued to stay below VND27 million this week.

On the SBJ trading floor, more than 208,640 taels were traded at VND24.75-25.46 million by 1:30pm local time.

Matching prices were at VND24.86-25.1 million at the ACB gold exchange, with 17,520 taels changing hands by 10:30am. The floor commission was at VND2 million a tael.

Green returned to the global gold price board this morning as the US currency fell against a basket of six major ones.

In Asia, the yellow metal rose as much as US$6 an ounce to $1,122 this morning.

February-delivery gold gained 0.3 percent to $1,123.40 an ounce after dropping as much as 0.7 percent earlier on the New York Mercantile Exchange.

The metal soared 27 percent this year.

The Central Bank of the Russian Federation announced it would buy 30 metric tons of gold from Gokhran, Russia’s state precious-metals repository, this week.

The US Dollar Index slid 0.2 percent after climbing to the highest level in more than five weeks on December 11.

Gold tumbled 8.5 percent from a record high of $1,226.56 an ounce made on December 3 as the index advanced 2.6 percent in the same period.

The dollar exchange against the euro remained above $1.46.

Experts from Eximbank expected the metal would make a sharp correction to $1,090-1,078 before climbing to $1,250-1,270.

Crude oil declined for the ninth straight day, poised for the longest losing streak since July 2001 on speculation the global economy’s uneven recovery from recession may slow growth in demand for fuel and energy.

Crude oil futures for January delivery lost $1.28 a barrel, 1.8 percent, to $68.59.

Prices dropped 7.4 percent last week, the biggest loss since September.

Compiled by Thuy Doan

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