Gold climbs to VND36 million again

The price of gold in Vietnam recovered VND100,000 a tael (1.2 ounces) over last weekend on December 20 due to support from rising momentum in global prices.

Saigon Jewelry Company bought gold at VND35.95 million and sold at VND36.02 million as of 9:30 am local time.

At Sacombank Jewelry Company, the metal was bought at VND35.91 million and sold at VND35.99 million.

At the same time Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND35.93 million and sold at VND36.03 million.

Trading on bullion market remained slow though the prices tended to rise again.

Domestically, gold fetched around VND600,000 a tael higher than global prices.

On free market, the US dollar exchange rate was almost unchanged as of last weekend. Dollars were bought at VND21,140 and sold at VND21,180, an increase of VND10 per dollar in selling price over last weekend.

Internationally, gold advanced as physical demand boosted prices.

In Asia, spot gold rose $8.5 an ounce over the closing price in New York to trade at $1,385 an ounce as of 10 am Vietnamese time.

The euro exchange rate against the US dollar fell to the lowest level in two weeks at $1.31 a euro. Concerns over the European debt crisis raised, especially after Moody’s Investors Service lowered Ireland’s credit rating to Baa1 from Aa2 and the region’s officials failed to make a pledge to deal with the financial crisis in a summit meeting last week.

According to experts, gold was supported by physical demand in Asia and the demand for the metal as wealth’s protector in Europe. Thus, the metal would not likely correct in the rest of this year despite a strengthening greenback.

SPDR Gold Trust, the largest exchange traded fund backed by bullion, bought 15.183 metric tons, the strongest purchase in the past two weeks, increasing its holdings to 1,298.94 metric tons on December 17.

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