Gold prices rise as forex rates fall

Thursday, Oct 09, 2014 16:30

Domestic gold prices increase for the fourth straight day on October 9.— Photo

HA NOI (Biz Hub) — Domestic gold prices increased for the fourth straight day and followed world market trends on October 9, posting an increase of VND30,000 (US$1.4) per tael.

On the same day, US dollar prices decreased by VND15 to VND30 per dollar from Wednesday's rate in most commercial banks in Vietnam. Vietcombank, BIDV, VietinBank and ACB were buying at VND21,190 to VND21,250 per dollar and selling at VND21,250 to VND21,300 per dollar.

In the capital city, each tael of gold from state-owned Saigon Jewellery Company was listed at VND35.87 million ($1,708), with one tael equivalent to 1.205 ounces.

The trend is the reverse of the previous week, when domestic gold prices sank to their lowest level in the last five months at VND35.52 million ($1,691) per tael.

On, the global gold trading floor, the price of gold increased by $5.7 to stand at $1,227 per ounce or $1,478.5 per tael.

According to, world gold prices climbed to their highest level in nearly two weeks last Thursday as expectations of an early increase in US interest rates eased and the US dollar lost traction after the release of the minutes of the last Federal Reserve policy meeting. Just last Monday, world gold prices hit a 15-month low at $1,183.46 per ounce.

This means on October 9, each tael of gold in Viet Nam was $230 higher than its equivalent in the world market.

In the flea market, the US dollar's buying and selling rates were VND21,230 and VND21,225 respectively.

On its website, the State Bank of Vietnam (SBV) maintained the US dollar exchange rate at VND21,246, the same rate since June 19. The SBV also set the ceiling on the dollar rate at VND21,458.50, which commercial banks were allowed to apply as an effective exchange rate with a one-per cent margin quoted Nguyen Thi Hong, SBV deputy governor, as saying the bank would retain the US dollar rate for commercial banks at VND21,240 per dollar but was prepared to sell dollars to stablise the market. Last October 3, the price of the US dollar climbed to VND21.320 in some commercial banks.— VNS

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