Gold surges on rising US dollar exchange rate

The price of gold in Vietnam climbed VND660,000 per tael (1.2 ounces) over the previous day on October 11 after the central bank raised the interbank exchange rate by VND15 per dollar.

Sacombank Jewelry Company bought gold at VND43.71 million and sold at VND43.89 million at 11:15 am local time.

Saigon Jewelry Company, the biggest gold processor and trader in Vietnam, quoted the price at VND43.6 million for buying, and VND43.9 million for selling in Ho Chi Minh City.

Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND43.8 million and sold at VND44.05 million at the same time.

Domestically, gold fetched VND1.5 million a tael higher than global price.

This morning, the State Bank of Vietnam increased its interbank exchange rate by VND15 per dollar to VND20,668 per dollar. This month, the rate has rose by VND40 per dollar. Vietcombank bought dollars at VND20,870, and sold at VND20,875.

Meanwhile, the US dollar exchange rate continued sinking on free market. Dollars were bought at VND21,200, and sold at VND21,270, a decrease of VND60 per dollar over the previous day.

International, gold surged as optimism that policy makers will resolve European debt crisis bolstered the shared currency, spurring demand for the precious metal as an alternative asset.

Gold for immediate delivery rose as much as $37.2 an ounce, or 2.3 percent, to close at $1,676.9 an ounce on the Comex in New York.

Spot gold was traded at $1,678.9 an ounce at 11:30 am Vietnamese time.

The euro exchange rate against the US dollar strongly recovered to $1.36 a euro in Tokyo at 11:15 am Vietnamese time.

Crude oil futures lost $0.12 a barrel to trade at $85.29 a barrel on the New York Mercantile Exchange at the same time.

By Thuy Doan

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