Gold soars by nearly VND900,00 per tael

The price of gold in Vietnam jumped by VND800,000 per tael (1.2 ounces) to surpass VND38 million per tael on June 20 as global gold price rallied after the US Federal Reserve decided to keep interest rate unchanged.
Saigon Jewelry Company bought gold at VND38.23 million per tael and sold at VND38.5 million per tael at 4 p.m. in Ho Chi Minh City, an increase of VND830,000 per tael in buying price and VND880,000 per tael in selling price.

At the same time, Doji Group purchased gold at VND38.21 million per tael and sold at VND38.41 million per tael, up VND830,000 per tael in buying price and VND810,000 per tael in selling price.

In global market, bullion was approaching to nearly US$1,400 an ounce. At 10.30 a.m. on June 20, gold for immediate delivery was at $1,380.4 an ounce, up more than $35 an ounce, or 2.5 percent over the previous trading session. Global gold price was around VND300,000-VND500,000 per tael higher than domestic one.

Investors thought that Fed would intend to lower interest rate in July so this signal dragged down the US dollar exchange, backing the precious metal as gold is evaluated by the greenback. The US Dollar Index, a gauge of the greenback against a basket of major currencies, fell to 96.92 points in the trading session in Asia on June 20 from 97.6 points in the previous day.

Upbeat sentiment pervaded widely on the Vietnam’s stock market in the trading session on June 20 as cash flow returned to the market. By the end of the trading session, movements on the market became more positive with cash flow spread to all stock groups. Banking shares strengthened strongly, of which, VCB led the group with an increase of nearly 3 percent to VND71,500 per share.

Besides, gas and oil stocks, including GAS, PVS, PVD, PVB, PVT and PXS also attracted cash flow fairly well as oil prices made strong recovery. Blue-chip stocks, such as BVH, FPT, GAS, REE, VIC, VRE, VHM, PNJ, MWG, VJC and HVN, also climbed simultaneously, enhancing rising momentum on the market. 

The VN-Index gained 9.49 points, or 1 percent, to close at 959.18 points. Foreign investors continued to net buy for nearly VND5 billion.

The HNX-Index of the smaller bourse in the north surged 1.24 percent to finish at 105.05 points.

Liquidity on the market improved significantly with total trading value of nearly VND3.5 trillion.

By Nhung Nguyen – Translated by Thuy Doan

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