Gold peaks new high

The price of gold in Vietnam surged by VND250,000 a tael (1.2 ounces) over the previous day on October 19 to hit a record of near VND33.4 million as global price rallied due to the greenback’s depreciation.

Gold was bought at VND33.3 million and sold at nearly VND33.4 million at most gold shops at 10 am local time.

Saigon Jewelry Company purchased gold at VND33.31 million and sold at VND33.37 million.

Meanwhile, the Hanoi-based Phu Quy Jewelry Company bought SJC-brand gold at VND33.29 million and sold at VND33.37 million.

According to gold traders, an increasing demand and rallying US dollar exchange rate helped the price to maintain at VND33 million and continue rising this morning. Trading on bullion market improved as gold made corrections the previous day.

Sacombank Jewelry Company said it was reasonable to buy gold at the level of VND32-32.2 million a tael for long-term investment.

The US dollar exchange rate on free market continued to advance after a robust rise yesterday. In Hanoi, dollars were collected at VND19,940 and sold at VND19,980, an increase of VND10 per dollar.

Globally, the precious metal resumed gains as the US dollar declined on speculation that the US Federal Reserve would take monetary stimulus measures to revive the economy amid low inflation.

Immediate-delivery gold gained as much as $0.9 an ounce over the closing price last weekend to close at $1,370.6 an ounce on the Comex in New York.

SPDR Gold Trust, the world’s largest exchange traded fund backed by bullion, sold 0.9 metric tons yesterday, reducing its holdings to 1,301 metric tons, the company’s website showed.

In Asia, gold little changed this morning as investors waited for the movements of the precious metal in the trading session in New York tonight.

Spot gold slightly fell to below $1,370 an ounce as of 10 am Vietnamese time.

The greenback debased as the US stock markets jumped due to positive business report of Citigroup Bank.

Investors expected that the US housing starts data in September would be a negative number, urging Fed to take more so-called quantitative easing to boost recovery.

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

November-delivery crude oil rose as much as $1.83 a barrel, or 2.3 percent, to close at $83.08 a barrel, the highest level since October 6, on the New York Mercantile Exchange.

This morning, crude oil retreated to below $83 a barrel.