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 rebounds on haven demand   2009-03-03 - TN, Bloomberg

 
 
   
Gold climbed for the first time in six sessions in London as stock markets tumbled on speculation that economies are worsening, adding to the metal’s appeal as a store of value.

 

European and Asian equities dropped and US stock-index futures fell after billionaire investor Warren Buffett said the American economy is in “shambles” and concern increased that financial companies will need more capital. Gold lost 5.1 percent last week, the most since early December, after rallying to an 11-month high of US$1,006.29 an ounce on February 20.

“Deepening fears surrounding the global economic picture have lifted gold,” said James Moore, an analyst at TheBullionDesk.com in London. The metal will likely trade between $930 an ounce and $970 an ounce in the “short term” before climbing to a record on concern economies may deteriorate, he said.

Bullion for immediate delivery rose as much as $16.16, or 1.7 percent, to $958.51 an ounce and traded at $950.43 at 11:02 a.m. local time. April futures gained $9.50, or 1 percent, to $952 an ounce in electronic trading on the New York Mercantile Exchange’s Comex division.

In Vietnam, the precious metal jumped on the back of the international rally. Gold price at the Saigon Jewelry Joint Stock Co., the country’s largest gold trader, surged VND250,000 to VND19.8 million ($1,132) a tael, or $944 per ounce. A tael is equal to 1.2 ounces.

Gold, which reached a record $1,032.70 an ounce a year ago, is up 7.9 percent this year. The MSCI World Index has slid 20 percent, with Citigroup Inc., Swiss Reinsurance Co. and other financial companies accounting for most of the 10 biggest drops.

Troubles ahead

“Despite the correction many analysts consider the upside momentum still intact given there’s no end in sight for troubles in the financial sector,” London-based broker ODL Securities Ltd. said today in a report.

Spot prices may rebound this week as investors seek a haven, according to 20 of 31 traders, investors and analysts surveyed from Tokyo to Chicago last week. Seven respondents advised selling and four were neutral. Still, hedge-fund managers and other large speculators decreased their net-long position, or bet prices will rise, by 2 percent in New York gold futures in the week ended February 24, according to US Commodity Futures Trading Commission data.

Gold imports by India, the world’s biggest consumer, fell for the fourth straight month to almost nil in February, according to provisional estimates from the Bombay Bullion Association Ltd.

Assets in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, held at a record 1,029.29 metric tons as of February 27. Holdings in the fund have increased 32 percent since the start of the year as investors sought a store of value.

 



Other news

BUSINESS IN BRIEF 3/3   2009-03-03

The inter-banking interest rate increaes slightly   2009-03-03

HSBC to Raise $17.7 Billion as Subprime Cuts Profit   2009-03-03

UK firms eye port projects   2009-03-03

Hanoi hosts Vietnam-Japan economic forum   2009-03-03

HCMC stocks move up for two days   2009-03-03

Processing workshops cry for shrimp, farmers cry for capita   2009-03-03

Lacking electricity, EVN blames gas supply   2009-03-03

Businesses prefer loans with higher interest rates, why?   2009-03-03

Banks give $4.6bil in subsidised loans   2009-03-03

February exports up 25.1%   2009-03-03

Suppliers slashing prices, clearing stocks for women’s day   2009-03-03

Real estate market remains uncertain in 2009   2009-03-03

Office market shaken by economic crisis   2009-03-03

Japanese entrepreneurs arrive to talk trade, investment   2009-03-03