Gold climbs to one-month high

Gold was bought at VND36.65 million and sold at VND36.75 million at most gold shops as of 9 am local time, an increase of VND150,000 a tael over the previous day.

Saigon Jewelry Company, the biggest gold shop in Vietnam, bought the metal at VND36.65 million and sold at VND36.72 million.

Hanoi-based Bao Tin Minh Chau purchased gold at VND36.65 million and sold at VND36.75 million.

Domestically, gold fetched VND200,000 a tael higher than global prices.

The dollar exchange rate on free market continued to plunge rapidly this morning after stalling the previous day. Dollars were bought at VND21,200 and sold at VND21,270, a decrease of VND80-100 per dollar over the previous day.

Internationally, gold surged as the Europe’s sovereign-debt crisis prompted investors to buy the metal as currency alternative.

Gold for immediate delivery rose as much as $9.2 an ounce, or 0.7 per cent, to close at $1,424.7 an ounce on the Comex in New York. Earlier, gold hit a record of $1,428.7 an ounce but failed to maintain gain due to profit-taking.

In Asia, gold slightly declined this morning. Spot gold was trading at $1,423 an ounce as of 9:45 am Vietnamese time, losing $1.7 an ounce over the closing price in New York.

Global financial markets became pessimistic because of news came out from the US and Europe.

The US Federal Reserve Chairman Ben Bernanke said the central bank may boost purchases of US debt and Fed purchases of government debt beyond $600 billion announced are possible.

Germany rejected calls to increase the European Union’s $1 trillion aid fund or introduce joint bond sales, a sign the country won’t bear more costs to stamp out the debt crisis.

It is expected Portugal to be the next country to ask for bailout package from the European Union after Greece and Ireland.

Investors increased purchases of high-safety assets, including gold and dollar, causing these two assets to rise. The euro fell 0.84 per cent against the US dollar to stand at $1.33 a euro.

Crude oil jumped to the highest level in the past two years due to Ben Bernanke’s statement as well as a forecast about a severe winter in the northern hemisphere.

Crude oil futures for January delivery gained $0.19 a barrel, or 0.21 per cent, to close at $89.38 a barrel.