Dec13: Vietnam gold tops VND36Mln, Dollar up to VND21,170

Gold prices on December 13 morning rose to VND36.02million/tael while dollar prices surged to VND21,170 in the free market.

Gold prices on December 13 morning rose to VND36.02million/tael while dollar prices surged to VND21,170 in the free market.

SJC was listed at VND35.93million/tael and VND36.02million/tael for bid and ask, respectively.

Sacombank-SBJ was listed at VND35.99million/tael and VND36.01million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND35.94million/tael and VND36.04million/tael for bid and ask, respectively.

Local trading remained sluggish as investors stayed on the sidelines. Many gold shops are attempting to narrow down bid and ask spread to heat up trading, the state media reported, citing that Sacombank-SBJ narrow this spread down up to VND20,000.

Last week, local gold prices plunged VND700,000/tael as dollar prices fell substantially and world gold prices tumbled. The gold price rocket this morning mainly attribute to the rebound of local dollar prices.

In Asian trade this morning, spot gold gained by 0.2% to $1,385.29 an ounce, after falling by 2.2% last week, U.S. gold futures edged up 0.1% to $1,386.6 an ounce.

Spot gold is biased to fall even though it is rangebound between $1,371 to $1,395 per ounce, said Wang Tao, a Reuters market analyst.

Investors are eyeing a Federal Reserve meeting on Tuesday to see whether the proposed $600 billion stimulus plan would be carried out, or if further stimulus would be considered to jump-start the economy.

“If the Fed hints further QE (quantitative easing), it would provide some bullish support to gold,” said Ong of Philip Futures.

“On the longer term, some investors could be buying on dips, which also provides support to prices.”

In the global market, the greenback edged higher against a basket of currencies, supported by higher Treasury yields after improving U.S. data late last week.

In the local market, dollar prices were quoted at VND21,120 and VND21,170 for bid and ask, respectively in the unofficial market, representing corresponding increases of VND80 and VND90. Meanwhile, those at Vietcombank are capped at VND19,480 and VND19,500 for bid and ask, respectively.- Susanna l News

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