Gold sinks as dollar rebounds

Gold price in Vietnam dropped to VND22 million a tael (1.2 ounces) on September 25 as global price headed for its weekly biggest decline in the last two months. It came after major economic indices announced by the US government were not as positive as expected.

Bullion was bought at VND22.08 million and sold at around VND22.17 million.

Most investors started to buy gold but are yet to heavily boost buying volume as they expect prices to fall further.

The extraordinary movements of global gold price, however, brought heat to gold exchanges.

On the SBJ trading floor, nearly 295,560 taels changed hands at VND21.38 million to VND21.89 million by 10am local time.

Globally, the metal sank to below US$1,000 an ounce as the US government announced that sales of existing homes sharply fell, which raised suspicions on the rate of the economic recovery, causing commodities’ prices to go down.

In New York, gold futures for October delivery slid as much as $15.5 an ounce, 1.5 percent, to $998.9 an ounce. Earlier, the metal sank to $991.3 an ounce, the lowest level since September 10.

Spot gold fell to $995.3 an ounce from $1,007.05 an ounce.

SPDR Gold Trust, the biggest exchange-traded fund backed by gold, sold 7.63 metric tons yesterday, sending its holdings to 1,094.11 metric tons, the firm’s website showed.

The US Federal Reserve System decided to keep its target lending rate at a record low between at zero and 0.25 percent.

The US Dollar Index, a six-currency gauge of the greenback’s value, advanced 1.3 percent, the highest rally within the last three months.

Crude oil dived to an eight-week low.

Crude oil futures for November settlement declined $3.08 a barrel to $65.89 a barrel, the lowest closing price since July 29.

A report by the US Energy Department said its crude oil reserve rose by 2.8 million barrels last week.

Compiled by Thuy Doan

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