Aug 3: Vietnam gold prices set fresh high at vnd41.3mln/tael, dollar stable

Vietnam gold prices continued to break its record high on rising momentum, up VND0.2 million to VND41.3 million a tael while dollar prices were stable.

As of 10:40 Hanoi time, Sacombank-SJC gold as listed at VND41.25million/tael and VND41.35million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tn Minh Chau were listed at VND41.2million/tael and VND41.35million/tael for bid and ask, respectively.

SJC in Hanoi was listed at VND41.24million/tael and VND41.33million/tael for bid and ask, respectively while SJC in the free market was quoted at VND41.23 million-VND41.35 million a tael for bid and ask respectively.

Early trade this morning, Vietnam gold prices retreated briefly on profit taking and after the world gold prices took a breather yesterday, however, the prices heated up soon this morning and continued to seek for fresh all-time high level.

It is reported that the public took this chance as an opportunity to sell gold, trading at gold stores were less active on caution.

Media reported a rare market action yesterday that gold traders adjusted up gold prices for 20 times in just one day yesterday on price storm. Gold rose VND1.3 million/tael yesterday.

In global market, gold held steady below its record high on Thursday, supported by worries about the spreading euro zone debt crisis and slowing global growth, while holdings in the SPDR Gold Trust rose for a second consecutive session.

Spot gold was flat at $1,660.95 an ounce by 0027 GMT, off a record of $1,672.65 set in the previous session. U.S. gold inched down 0.2% to $1,663.8 an ounce. It reached an all-time high of $1,675.9 on Wednesday.

SPDR Gold Trust holdings rise

Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust , rose for a second day straight to 1,286.30 metric tons on Wednesday, highest since late December.
The amount of gold held by the fund grew nearly 7% since the beginning of July, compared to a 6%, or 72 metric tons, outflow in the first half of the year.

SPDR’s holdings’ record-high was 1,320.436 tons on June 29 last year.

Central Banks Join Rush to Gold

Central banks are ramping up their gold buying as they seek to diversify their reserves away from the dollar and other beleaguered currencies.

South Korea recently bought 25 metric tons – more than doubling its holdings to 39 metric tons. Mexico, Russia and Thailand have also been major buyers in 2011.

“The gold purchase, as a safety net, will help us cope with volatile global financial markets and enhance investor confidence in Korea in times of crisis,” WSJ quoted Hong Taeg-ki, chief of the BOK’s reserve management group as saying.

This year, governments have almost tripled their net gold purchases, increasing their holdings by 203.5 metric tons this year, up from a 76-metric ton rise last year, according to the World Gold Council, an industry group backed by miners.

“We definitely have seen a sea change” in central bank attitudes toward gold, WSJ quoted David Greely, chief commodities strategist at Goldman Sachs Group as saying. Central bank buying provides “longer-term support for gold prices,” he said.

Many emerging nations also have a relatively small percentage of their reserves in gold, compared to the developed world. The U.S. has 74.7% of its reserves in gold, compared to 1.6% for China and 8.7% for India, according to the gold council.

Money market

Local dollar midpoint exchange rate was unchanged in the past 23 days at VND20,608. The SBV’s transaction office quoted dollar prices at VND20,600 –VND20,814 for bid and ask, respectively while commercially banks mostly quoted dollar prices at VND20,565- VND20,615. – Stoxplus.com

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