Gold surges to near VND49 million

The price of gold in Vietnam headed to VND49 million a tael (1.2 ounces) on August 22 as global price approached US$1,900 an ounce on concerns over the US economy and the European sovereign-debt crisis.

Sacombank Jewelry Company quoted the price at VND48.11 million for buying and VND48.49 million for selling at 1:45 pm local time.

Saigon Jewelry Company, the biggest gold shop in Vietnam, bought the metal at VND48.2 million and sold at VND48.6 million at 1:55 pm.

Meanwhile, Hanoi-based Phu Quy Jewelry Company purchased SJC-brand gold at VND48.2 million and sold at VND48.75 million at 2:15 pm.

The metal gained VND1.4 million a tael over last weekend. Domestically, gold fetched VND1 million a tael higher than global price.

Trading volume fairly dropped over the previous days as high prices made customers become cautious and hesitated. Phu Nhuan Jewelry Company said it sold more than 1,000 taels, but bought only 350 taels this morning.

On foreign currency market, commercial banks continued to sell the greenback at the highest allowed price, while the dollar prices on free market surged to near VND21,000.

State-owned Vietcombank bought the greenback at VND20,800 and sold at VND20,824. In Hanoi, dollars were collected at VND20,920 and sold at VND20,970 by 2 pm local time.

Internationally, gold rallied for a sixth day to all-time high as concerns that global economic growth may stall amid a worsening sovereign-debt crisis in the US and Europe boosted demand for the precious metal as a safe-haven.

Gold for immediate delivery soared $39.5 an ounce, or 2.1 percent, over the closing price in New York last weekend, to trade at $1,893.6 an ounce at 2:15 pm Vietnamese time.

Last week, gold climbed the most in two and a half years.

This week, investors anticipate if the US Federal Reserve signals any sign of a possible financial stimulus into the faltering economy. If Fed pumps more money into the economy, inflation may rises and gold will advance further.

Other news