Feb 25: Vietnam gold falls, Dollar edges up

Local gold prices on February 25 eased as global gold prices fell this morning on Asia trade, local dollar prices nudged to VND22,100.

As of 16:30 Hanoi time, Sacombank-SBJ gold as listed at VND37.69 million/tael and VND37.75 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 VND37.62 million/tael and VND37.73 million/tael for bid and ask, respectively.

SJC in Hanoi was listed at VND37.65 million/tael and VND37.74 million/tael for bid and ask, respectively. Meanwhile, SJC in HCMC was listed at VND37.65million/tael and VND37.72 milllion/tael for bid and ask, respectively.

In Euro trade this afternoon, spot gold held steady above $1,400, headed for its fourth consecutive week of gains, as investors kept close watch on the situation in Libya and the energy market.

Spot gold inched up 0.2 %to $1,404.30 an ounce, while the most active U.S. gold futures contract lost 0.8 %to $1,404.80.

“The gold market is still very much influenced by unrest in the Middle East and North Africa,” said Ong Yi Ling, an analyst at Phillip Futures. “The spotlight remains on the region. If tension escalates, we could see gold continue to push higher.”

Technical analysis shows that spot gold will consolidate between $1,390 and $1,410 per ounce as the correction on Thursday has temporarily violated its uptrend, said Reuters market analyst Wang Tao.

“Gold is likely to go through some consolidation, if not correction,” said Hou Xinqiang, an analyst at Jinrui Futures, “The influence may ebb quickly if no big story breaks — countries split up in violence or the region fell into complete chaos.”

Holdings in the SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, dipped to a nine-month low of 1,211.568 metric tons.

The holdings in the ETF were on course for its fifth consecutive month of loss, after a hefty 54 ton drop in January.

“Beyond the Middle East crisis, if you look at the general economic environment, it’s actually quite optimistic,” said Ong of Phillip Futures.

In local money market, dollars are quoted at VND21,950 –VND 22,100 for bids and ask respectively. – Stoxplus.com

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