Vietnam News Network

Vietnam News: Local, National, Business, Sport, Entertainment and Technology

Trade BTCUSD, Bitcoin and Cryptocurrencies

BUY & SELL BTCUSD | View BTCUSD News & Updates

Buy Sell BTCUSD, Bitcoin and Cryptocurrencies

Gold makes a comeback on higher oil, anemic dollar   2008-05-23 - ThanhNienNews


Gold prices surged by over 2 percent Wednesday, in the process waking up a market that had gone into slumber for a while.



Saigon Jewelry Company (SJC) gold went up to VND18.27 million (US$1,134) per tael (37.5 grams) in the morning and continued to move up to close at VND18.31 million ($1,137), a one-day gain of VND380,000 ($23).

Trading volume at the Saigon Gold Exchange jumped by 5.3 percent to 383,700 taels worth more than VND7 trillion ($435 million).

A HCMC trader said he would have earned VND52 million ($3,200) Wednesday if he had sold the 100 taels he bought last Friday.

“But the price will possibly move up in the coming days, so I won’t sell now,” he said.

Nguyen Thi Cuc, deputy general director of Phu Nhuan Jewelry Company, said the recent hike in gold price had slowed down sales of jewelry and boosted trading in mini gold bars this month.

She also said the firm sold 3,850 taels and bought 2,610 during the day.

An SJC representative said his company sold 2,000 taels and bought 5,000 on the same day.

Internationally, the precious metal moved up to $925.25 per ounce from $920.

It has soared 6 percent in the last four days.

Experts from the Vietnam Export Import Commercial Joint Stock Bank, or Eximbank, said the gold price gain was sparked by growing inflation worries after oil climbed to a new record high.

Oil prices soared past $130 a barrel for the first time amid anxiety about stretched supplies and strong demand for energy, and a weakening dollar, AFP quoted analysts as saying.

A weakened dollar also gave gold some lift as investors across Asia gained more buying power against US dollar-denominated bullion, Reuters said in a report Wednesday.

“The combination of oil and the currencies spells more interest in gold,” the media quoted a metals dealer at an Australian bank as saying, adding there was a risk profit-takers could take some of the air out of the rally if the dollar regained some strength.

Banks mobilize gold

After the central bank abandoned the 12 percent deposit interest rate cap last Saturday, local banks have pushed up the gold deposit interest rate alongside the dong and dollar rates.

Eximbank has raised its gold deposit interest rate by 1.5 percent per year across the board.

The lender is offering 3.5 percent per year for one-month deposits, rising all the way up to 5.5 percent for 12 months.

Housing Development Bank has raised its three-month term deposit rate from 4.5 to 5.5 percent per year.

Huynh Trung Khanh, vice chairman of the Vietnam Gold Trading Association, said the banks raised the interest rates in the hope of selling gold abroad to mobilize more dollars.

Other news

Vietnam greenlights $4.2-bln casino-resort in south   2008-05-23

Fishing for improvements   2008-05-23

Gloomy economic picture keeps market on downtrend   2008-05-23

HSBC links ATM networks with Vietnamese bank   2008-05-23

Airport to get nearly 1 billion USD makeover   2008-05-22

Autopetro exposition opens in HCM City   2008-05-22

Robusta coffee declines on Vietnam supply concerns   2008-05-21

Nothing seems to be able to stop the slide   2008-05-21

Vietnamese, US firms cooperate in e-trade   2008-05-21

Fruit sales rise on higher quality   2008-05-21

Rice exporters hope to sell beyond ban   2008-05-21

High interest rates may make banks ‘unprofitable’   2008-05-21

Capital jumping from stock market to banks   2008-05-21

Prime Minister Orders Tight Lid on Credit   2008-05-21