Gold soars to VND35.8 million

The price of gold in Vietnam emerged to VND35.8 million a tael (1.2 ounces) on November 22 as global prices recovered, backed by the euro’s revival.

Most gold shops bought the metal at VND35.65-35.7 million and sold at VND35.7-35.8 million, an increase of VND200,000 a tael over last weekend, as of 10 am local time.

Sacombank Jewelry bought gold at VND35.71 million and sold at VND35.89 million.

Saigon Jewelry Co., the biggest gold shop in Vietnam, purchased the metal at VND35.65 million and sold at VND35.72 million.

Meanwhile, SJC-brand gold was bought at VND35.7 million and sold at VND35.8 million at Hanoi-based Phu Quy Jewelry.

Domestically, gold fetched VND1 million higher than global prices.

On free market, the US dollar exchange rate surged VND100 per dollar over last weekend to stand at VND21,120 for buying and VND21,180 for selling.

Globally, bullion rebounded for three consecutive trading sessions as the euro strengthened versus the US dollar after the European Union and the International Monetary Fund agreed to rescue Ireland.

Meanwhile, Ireland also sought for international aid, becoming the second euro country to need a rescue to prevent its banking system from a possible stumble.

Irish Finance Minister Brian Lenihan said it would channel some of the money from EU and IMF to its lenders.

The euro exchange rate against the greenback swung below $1.38 a euro in Tokyo this morning from $1.37 last weekend.

Gold for immediate delivery hovered above $1,360 an ounce in Asia as of 10 am Vietnamese time this morning, up $5.5 an ounce over the closing price in New York.

Last week, the precious metal lost 1.1 percent.

However, according to analysts, the possibility that China might tighten its monetary policies would put a barrier to the gold price’s leaps. Last week, China ordered its commercial banks to rise their compulsory reserve ratio, as well as to take actions to stabilize the prices.

Experts expected that the People’s Bank of China might raise its interest rates next month.

By Thuy Doan

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