Gold treads water; bank dollar rallies

The price of gold in Vietnam stalled at VND45 million per tael (1.2 ounces) on October 27 despite a sharp rise in global price.

Sacombank Jewelry Company and Saigon Jewelry Company, the biggest gold shop in Vietnam, bought gold at VND44.7 million and sold at VND45 million.

Hanoi-based Phu Quy Jewlery Company purchased SJC-brand gold at VND44.7 million and sold at VND44.98 million as of 11:58 am local time.

Domestically, gold fetched VND1.3 million a tael higher than global price.

The State Bank of Vietnam raised interbank exchange rate by VND20 per dollar to VND20,788 per dollar this morning. Vietcombank bought dollars at VND20,990, and sold at VND 20,996. On free market, the greenback was purchased at VND21,500, and sold at VND21,600, a decrease of VND150 in buying price, and VND120 in selling price over the previous day.

Internationally, gold surged to the highest level in the past one month as concerns over the Europe’s sovereign-debt turmoil spurred demand for the precious metal as an alternative asset.

Gold for immediate delivery gained as much as $20.9 an ounce, or 1.2 percent, to $1,726.5 an ounce on the Comex in New York.

Gold futures for December settlement also added up around $19.4 to $1,719.8 an ounce.

Holdings at SPDR Gold Trust, the largest exchange traded fund backed by bullion, rose by 16.6 metric tons in the past three trading sessions to 1,244.2 metric tons, the company’s website showed.

In Asia, spot gold slid $1.9 to trade at $1,725.3 an ounce at 10:40 am Vietnamese time.

The euro exchange rate against the US dollar climbed to $1.4 a euro in Tokyo this morning from $1.39 a euro the previous day.

By Thuy Doan

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