Gold steadies above VND22 million

Gold price in Vietnam on September 9 fell after hitting an all-time high of VND22.22 million a tael (1.2 ounces) made last evening, but remained firmly on the VND22 million mark as global prices hovered around US$1,000 an ounce.

Gold was bought at VND22 million and sold at VND22.1 million, a fall of VND100,000-150,000 a tael than the previous day.

Domestic prices were fetching VND100,000 higher than global prices.

With such a high price, trading volume on the bullion market has improved.

A representative of Phu Quy Jewelry said trading at the firm rose by 30 percent more than the previous day.

Phu Nhuan Jewelry said it bought more than 4,000 taels yesterday morning while selling just around 500 taels.

However, according to the representatives, the market was lacking customers trading at high volumes, as most major investors do not consider it the right time to trade, despite gold reaching such a high rate.

Globally, gold futures for October delivery retreated as investors sold gold to take profits. The metal earlier hit $1,009.7 an ounce, the highest level in six months.

Spot gold rose as much as $2.2 an ounce to $997.7 an ounce in New York.

In Asia, bullion for immediate delivery surged $5 an ounce more than closing price in New York, to $1,002.7 an ounce this morning.

Holdings at SPDR Gold Trust, the biggest exchange-traded fund backed by the metal, were unchanged at 1,077.63 tons as of September 8.

The US Dollar Index, a six-currency gauge of the greenback’s strength, dropped to 77.09 and was expected to plunge further as signs of economic recovery curbed the greenback’s appeal as a safe investment channel.

Crude oil prices hiked as a declined dollar spurred demand for commodities, and as OPEC ministers gathered in Vienna to set output levels.

Crude oil futures for October delivery advanced as much as $3.08 a barrel, 4.5 percent, to close at $71.1 a barrel, the biggest gain since August 19.

This year, oil has soared 60 percent in New York.

Brent crude oil for October settlement rose $2.89, 4.3 percent, to close at $69.42 a barrel in London.

Compiled by Thuy Doan

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