Feb 21: Vietnam gold falls under VND38Ml, Dollar down on tightening policy

Local gold prices on February 21 eased after breaking VND38 million a tael last week and early trade this morning as dollar prices fell after the news of cutting money supply by VND110 trillion this year.

As of 17:00 Hanoi time, Sacombank-SBJ gold as listed at VND37.72 million/tael and VND37.84 million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND37.7 million/tael and VND37.85 million/tael for bid and ask, respectively.

SJC in Hanoi was listed at VND37.78 million/tael and VND37.87 million/tael for bid and ask, respectively. Meanwhile, SJC in HCMC was listed at VND37.78million/tael and VND37.85 milllion/tael for bid and ask, respectively.

In Euro trade this afternoon, gold rose to a seven-week high as spreading unrest in the Middle East burnished the metal’s appeal as a safe-haven asset. Spot gold climbed to $1,396.1, before easing slightly to $1,395.9 per ounce. Gold is poised for a sixth straight session of gains. U.S. gold futures for April delivery climbed 0.7% to $1,395.90 per ounce, compared to Friday’s settlement at $1,388.60.

“With the unrest in the Middle East and North Africa, dealers couldn’t leave for a long weekend with short positions, and this reflects investor sentiment for a flight to safety,” said Yuichi Ikemizu, Tokyo branch manager for Standard Bank, adding that gold prices were likely to keep inching higher.

Spot gold may rise to its Jan. 3 high of $1,423.57 per ounce as it has ignored bearish signals and continued to shoot up, says Wang Tao, a Reuters market analyst for commodities and energy technicals.

The world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust said holdings fell to 1,223.098 tonnes by Feb. 20, its lowest in nine months, from 1,224.008 tonnes on Feb. 15.

Traders said there was slightly higher demand for gold bars in the Middle East, mainly due to the unrest.

A deepening backwardation – which means futures are cheaper than spot prices – reflects tightness in the market.

In local money market, dollars are quoted at VND22,050 –VND 22,150 falling from early high of VND22,300. – Stoxplus.com

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