April 14: Vietnam gold bucks trend, Dong advances

Local gold on April 14 fell to VND37.08million a tael though global gold rose to settle above $1,455 an ounce in New York trade last night. The dong advanced VND5 per dollar at banks.

As of 2:10 p.m. Hanoi time, Sacombank-SBJ gold as listed at VND37.01million/tael and VND37.05million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tn Minh Chau were listed at VND36.97million/tael and VND37.07million/tael for bid and ask, respectively.

SJC in Hanoi was listed at VND36.99million/tael and VND37.08million/tael for bid and ask, respectively, meanwhile, SJC in HCMC was listed at VND36.99million/tael and VND37.06milllion/tael for bid and ask, respectively.

In Asian trade this morning, gold rose for a second day on Thursday as the U.S. dollar fell to a 16-month low against a basket of currencies on expectations the Federal Reserve will lag global central banks in raising interest rates.

Spot gold rose $4.95 to $1,459.56 an ounce. U.S. gold futures for June rose $6.1 an ounce to $1,461.7 an ounce.

A dip from all-time highs would spur physical purchases from jewelers in Asia. Worries about inflation have also ensured steady demand from China, which will release consumer prices and other key data such as GDP on Friday that will offer clues on Beijing’s next monetary policy move.

“Gold could be supported by the weak dollar and the loose monetary policy from the Federal Reserve,” said Ong Yi Ling, investment analyst at Phillip Futures in Singapore.

“Asian buying may resurface upon dips in prices. Chinese demand for gold is expected to remain strong. Amidst rising inflation and a lack of investment alternatives, gold is sought as a store of value.”

“Prices are extremely high, currently, so perhaps it could take a breather,” said a dealer in Singapore. “But if gold goes up, silver is likely rise as well. I continue to look for silver taking its cue from gold.”

The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings extended losses and fell to 1,212.964 metric tons by April 13, their lowest in a week, from 1,216.299 metric tons on April 12.

In local official forex market, the dong advanced as the State Bank of Vietnam (SBV) strengthened reference rate to VND20,718 per dollar compared to VND20,723 per dollar yesterday, according to the central bank’s data. – Stoxplus.com

Tags: vietnam gold, Vietnam gold market, Vietnam gold prices