Gold treads water as it waits for FED’s decision

Gold price in Vietnam was poised above VND22.2 million a tael (1.2 ounces) on September 22 as global investors’ heavy buying pulled the metal back to above US$1,000 an ounce.

After buying heavily for a few days, local investors became cautious. Trading on the bullion market was reported muted as investors were waiting for new movement of global price over a meeting of the US’s Federal Reserve this Tuesday and Wednesday.

On the SBJ trading floor, nearly 210,000 taels changing hands at VND21.44 to VND21.65 million by 10am local time.

Globally, gold dropped for three straight sessions as the dollar rallied, reducing the demand of the metal as a store of value.

In New York, spot gold fell as much as $3.5 an ounce, 0.4 percent, to $1,004 an ounce. Earlier, the metal was traded at $995 an ounce.

In Asia, gold slightly rose to $1,005-1,006 an ounce this morning.

Holdings at SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, were increased by 15.256 metric tons to 1,101.735 metric tons. The fund’s holdings reached a record 1,134.03 metric tons on June 1.

Bullion, which moves inversely with the dollar, has risen 14 percent this year.

The US Dollar Index slid 0.3 percent to 76.552.

Crude oil fell to below $70 a barrel as the global stock markets slumped.

Crude oil futures for October delivery declined as much as $2.33 a barrel to close at $69.71 a barrel on the New York Mercantile Exchange.

The State Bank of Vietnam fixed its dollar exchange rate at an all-time high of VND16,990. State-owned Vietcombank traded the dollar at VND17,840.

Compiled by Thuy Doan

Other news