Gold stalls; dollar up

The price of gold in Vietnam fluctuated around VND35.9 million a tael (1.2 ounces) on December 17 as global prices remained under losing pressure caused by a strengthened dollar.

Most gold shops bought the metal at above VND35.75 million and sold around VND35.85 million as of 9 am local time, almost unchanged over the previous day.

Saigon Jewelery Company, the biggest gold shop in Vietnam, bought gold at VND35.77 million and sold at VND35.85 million.

Meanwhile, Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND35.79 million and sold at VND35.89 million.

Gold failed to maintained above VND36 million a tael in the past three days due to a declining momentum in global prices and in the US dollar exchange rate on free market. Generally, trading on bullion market stayed muted.

However, domestic gold price started to receive support as global prices turned green due to buying demand at low prices and the dollar exchange rate on free market recovered.

On free market this morning, dollar were bought at VND21,130 and sold at VND21,180, an increase of VND130 over the previous day.

Internationally, gold retreated for three consecutive trading sessions as the US positive economic data eroded demand for the precious metal as a safe-haven.

Gold for immediate delivery lost as much as $9.9 an ounce, or 0.7 percent, to close at $1,370.5 an ounce on the Comex in New York.

In Asia, gold significantly recovered this morning. Spot gold surged $6 an ounce to trade at $1,376.5 an ounce as of 9:55 am Vietnamese time.

The US dollar weakened against a basket of six major currencies, including the euro and the yen, as European Union leaders agreed to create a mechanism to contain future debt shocks and the bloc’s central bank armed itself with more capital. The euro exchange rate against the greenback stalled at $1.32 a euro this morning.

Statistic showed that initial jobless claims for the week ended December 11 unexpectedly dropped while industrial production increased in some regions.

Holdings at SPDR Gold Trust, the largest exchange-traded fund back by bullion, continued to reduce 2.4 metric tons to 1,283.8 metric tons yesterday, the lowest level in the past two months.

Crude oil futures for January delivery slipped $0.92 a barrel to close at $87.7 a barrel on the New York Mercantile Exchange.

This morning, crude oil slightly rebounded to trade around $88.2 a barrel.

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