Gold surges; dollar trades at VND19,000 again

The price of gold in Vietnam edged up by VND120,000 a tael (1.2 ounces) over the previous day on June 25, thanks to a rise in global price as international investors promoted buying gold as a hedge against present risks within the world market.

Most gold shops bought the metal at VND28.45 million and sold at VND28.5 million.

The bullion market remained subdued because most investors were waiting for a new wave of movement within the market.

After remaining under VND19,000 for a long time, the greenback exchange rate hit this mark again. In Hanoi, dollars were bought at VND18,990 and sold at VND19,000 on the free market. State-owned Vietcombank purchased dollars at VND18,980 and sold at VND19,015.

According to a report by General Statistics Office released June 23, gold exports reached 36 metric tons, worth US$350 million, in the first six months of this year.

According to Huynh Trung Khanh, deputy chairman of Vietnam Gold Traders Association, current gold holdings in Vietnam were around 300-400 metric tons.

Globally, the slumping US stock market prompted investors to pump money into gold. Wall Street tumbled after the US Department of Commerce announced that durable goods orders fell 1.1 percent last month, marking the first decline in nine months.

Concerns were raised after the cost of protecting the Greek government against defaulting on their debt. This established that investors still believed that the Greek economy may still default, despite receiving a bailout package financed by the European Union and International Monetary Fund.

Spot gold rose as much as $6.1 an ounce, or 0.5 percent, to finish at $1,244.4 an ounce.

In Asia, gold continued rising, climbing to $1,245-$1,246 an ounce this morning.

According to figures on SPDR Gold Trust’s website, its holdings increased by 3.1 metric tons to an all-time high 1,316.2 metric tons.

The euro exchange rate continued to stay above $1.23.

Crude oil gained $0.16 a barrel to $76.51 a barrel in New York last night.

This morning, the liquid traded around $76.5 a barrel.

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