Gold price declines as dollar surges

Thursday, Nov 06, 2014 16:17

Price of one tael of gold in Viet Nam is $291 higher than the world price on November 6.— Photo

HA NOI (Biz Hub) — The world gold prices fell to their lowest level since April 2010, while the local gold prices hit their 10-month low in Viet Nam on November 6.

On the global gold trading floor, gold prices fell by $1.7 per ounce to stand at $1,138.3 per ounce or $1,371 per tael.

According to, gold languished because investors dumped the safe-haven metal as the dollar and equities gained strength. The markets now fear that the yellow metal will hit $1,000 an ounce. A sharp sell-off in gold began last Friday, when the metal fell through the $1,180 level. It was the lowest the precious metal had fallen to since last year's 28-per-cent plunge.

Meanwhile, in Ha Noi, each tael of the state-owned brand SJC lost VND400,000 (US$19.04) and was sold at VND34.92 million ($1,662) at Doji Gold and Gems Group. One tael is equivalent to 1.205 ounces.

Thus, each tael of gold in Viet Nam was priced $291 higher than that in the world market.

Globally, the US dollar rose to a four-year high against a basket of major currencies on Wednesday, after Republicans won control over both Houses of the US Congress for the first time since 2006, lifting investor expectations for more pro-business policies.

In the local market, the US dollar prices did not change much compared to the rate on November 5. Vietcombank, BIDV and VietinBank, as well as ACB bought the US dollar at rates between VND21,220 and VND21,260, and sold it at rates between VND21,310 and VND21,330.

In the flea market, a US dollar was sold for VND21,380 and bought for VND21,360.

On its website, the State Bank of Viet Nam (SBV) maintained the US dollar exchange rate at the June 19 price of VND21,246.

The SBV also set the US dollar rate ceiling at VND21,458.50, which commercial banks were allowed to apply as an effective exchange rate with a one-per cent margin. — VNS

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