Gold price in Vietnam jumped to VND24.1 million a tael (1.2 troy ounces) on November 3 as the global price climbed to the highest in a week and the US dollar declined.
The dollar’s decline boosted the appeal of the metal as an alternative asset.
At most gold shops in Vietnam, bullion was bought at VND24 million and sold at VND24.1 million, an increase of VND200,000 a tael more than the previous day.
Gold had previously climbed to the VND24 million mark on October 20, but it only stayed there for a few hours.
The trading gap between buying and selling prices was extended to VND100,000 a tael from VND50,000-70,000 a tael in the previous day.
According to gold traders, trading on the bullion market was muted as investors remained calm and waited for stronger changes in the prices.
On the SBJ trading floor, trading volume was fairly high with nearly 215,000 taels changing hands at VND22.65 million to VND22.995 million by 10am local time.
Globally, gold hiked as the greenback slumped, prompting investors to seek the metal as a store of value.
Spot gold rose as much as $20.1 an ounce, 1.9 percent, to $1,060.5 an ounce on the New York Mercantile Exchange. Earlier, the metal touched $1,062 an ounce.
In Asia, gold for immediate delivery was at $1,067 an ounce this morning.
Optimistic economic information announced yesterday by the US government eroded the attraction of dollar as a high-safety investment channel.
The US National Association of Realtors said pending sales of existing homes rose 6.1 percent, the highest since December 2006.
The Institute of Supply Management’s factory index rose to 55.7 from 52.6 last month, higher than forecast.
The dollar exchange rate against the euro slid to just above $1.48.
The greenback was expected to continue to depreciate further as the US Federal Reserve would probably maintain the benchmark lending rate at zero to 0.25 percent for a little longer at a meeting on November 3-4.
Jon Greenlee, associate director of the Fed’s Division of Banking Supervision and Regulation, said the US banking system remained far from robust and was threatened by rising prospects for defaults on commercial real-estate loans.
The International Monetary Fund said it would sell 200 metric tons of gold, the first sale in nine years, worth $6.7 billion to the Central Bank of India. This is a part of 403.3 tons it agreed in September to sell to shore up its finances.
Crude oil recovered on the depreciation of the greenback and the US’s positive economic information.
Crude oil futures for December delivery rose $1.13 a barrel, 1.5 percent, to $78.13 a barrel on the New York Mercantile Exchange.
In Asia, crude oil surged to nearly $78.5 a barrel this morning.