Dec 7: Vietnam gold surges to VND36.75Mln as world gold prices hit all-time high

Gold prices on December 7 soared VND170,000 to VND36.75 million/tael as the world gold prices hit an all-time high at $1,427.01/ounce on safe-haven play.

Gold prices on December 7 soared VND170,000 to VND36.75 million/tael as the world gold prices hit an all-time high at $1,427.01/ounce on safe-haven play.

SJC was listed at VND36.65million/tael and VND36.75million/tael for bid and ask, respectively.

Sacombank-SBJ was listed at VND36.66million/tael and VND36.72million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND36.66million/tael and VND36.76million/tael for bid and ask, respectively.

Local gold prices fluctuated from VND36.5million/tael to VND36.7million/tael last weekend though the global gold market closed, the state media reported, citing that gold prices surged VND500,000 after global ones rose 2.1% to top $1,400/ounce.

Some people started getting on board when signs of heating-up gold prices were seen, said gold traders.

In New York trade last night, spot gold was last bid around $1,424. U.S. gold futures for February, which settled at $1,416.10 in regular trade, climbed to $1,425.70 in post-settlement trade.

On the investment side of the gold market, the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings fell to 1,298.030 tons on Friday.

Fresh concerns emerged over the stability of the foreign exchange markets after Federal Reserve Chair Ben Bernanke said on Sunday the bank could buy more than the $600 billion in U.S. government bonds it has committed to purchase.

If the Fed extends its quantitative easing policy, further undermining the dollar, it could lead to fresh buying of gold as an alternative to paper currencies. This added to the momentum gold picked up last week on worries over euro zone debt levels.

“Gold is supported either way — risk sentiment turning sour, or (by) further weakness in the greenback,” said VTB Capital analyst Andrey Kryuchenkov. “Clearly investment demand is still there.”

While strength in the dollar would usually limit gains in gold, it can rise in tandem with the U.S. currency at times when risk aversion is extremely elevated.

“While lingering concerns over euro zone debt issues maintain safe-haven buying, the potential for a longer than expected period of expansionary monetary policy in the U.S. and Europe is prolonging the precious metals bull market,” said Morgan Stanley in a note.

In the global market, the greenback rebounded to trade nearly 1% up on the euro as the single currency was battered by debt concerns ahead of a euro zone finance ministers’ meeting.- Reuters

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