Gold speeds up on rising demand

The price of gold in Vietnam recovered to around VND47 million a tael (1.2 ounces) on September 21 as global price rebounded by nearly 1.5 percent in the trading session last night in New York.

Sacombank Jewelry Company bought gold at VND46.89 million and sold at VND47.02 million at 10:30 am local time.

Saigon Jewelry Company, the biggest gold processor and trader in Vietnam, quoted the price at VND47.03 million for buying and VND47.18 million for selling at 11:15 am local time in Ho Chi Minh City. In Hanoi, the company bought gold at VND47.03 million and sold VND47.2 million.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND47.03 million and sold at VND47.23 million at the same time.

Domestically, gold fetched VND1.7 million a tael higher than global price.

Trading on bullion market was fairly high as low prices prompted investors to buy in heavily.

Saigon Jewelry Company said they sold 9,000 taels of gold and bought 7,500 taels yesterday. According to Nguyen Cong Tuong, deputy sales manager of SJC, the majority of 7,500 taels of gold that his company bought yesterday were purchased from gold trading institutions to balance the company’s inventory as people almost had not sold gold.

On foreign currency market, the dollar exchange rate bounded this morning. Dollars were bought at VND21,040 and sold at VND21,090 on free market in Hanoi, an increase of VND30 per dollar over the previous day. Meanwhile, the rate remained stable at commercial banks for several days.
Internationally, gold regained as concern over a worsening European sovereign-debt crisis bolstered demand for the precious metal as an alternative asset.

Gold for immediate delivery rose as much as $26.3 an ounce to close at $1,805 an ounce on the Comex in New York.

In Asia, the heavy metal prolonged rising momentum at a weaker pace this morning. Spot gold was traded at $1,812.2 at 11 am Vietnamese time.

Data released yesterday showed that construction of new homes fell, increasing speculation that the Federal Reserve may announce steps today to shore up the US economy.

Holdings at SPDR Gold Trust, the largest exchange traded fund backed by bullion, raised by 10.9 metric tons to 1,252.2 metric tons, the company’s website showed.

The euro exchange rate against the US dollar was above $1.37 a euro in Tokyo this morning.

By Nam Giao

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