Feb 25: Vietnam gold firms, Dollar losses VND22,000 threshold

Local gold prices on February 28 stayed firm though global gold prices rose, dollar prices fell under VND22,000 threshold.

As of 17:00 Hanoi time, Sacombank-SBJ gold as listed at VND37.59 million/tael and VND37.63 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 VND37.52 million/tael and VND37.64 million/tael for bid and ask, respectively.

SJC in Hanoi was listed at VND37.52 million/tael and VND37.61 million/tael for bid and ask, respectively. Meanwhile, SJC in HCMC was listed at VND37.52million/tael and VND37.59 milllion/tael for bid and ask, respectively.

In Euro trade this afternoon, spot gold inched up, heading for its best month since last August, boosted by fears over the deteriorating situation in Libya and spreading violence in the region, supported by rising oil prices.

Spot gold inched up 0.3 percent to $1,412.75 an ounce, extending gains from the previous session. The most active U.S. gold futures contract also edged up 0.3 percent to $1,413.60.

Gold rose 1.5 percent last week, compared to a 14 percent jump in U.S. crude oil.

Spot gold is poised to break a resistance at $1,423.57, a high touched on Jan. 3, based on its wave pattern and a channel technique, said Reuters market analyst Wang Tao.

“The sentiment is still generally bullish,” said a Singapore-based dealer, “If oil keeps going up, people will continue to bet on gold, as a hedge against inflation and against risks caused by the unrest in the Middle East.”

“We haven’t seen increasing volatility in gold as we see in the oil market,” said Yingxi Yu, an analyst at Barclays Capital. “It does seem like momentum in gold is not as strong. This time around, even when things are bad, gold hasn’t been such a popular investment, because things are looking brighter in the global economy.”

Economists have revised growth forecasts, and the tightening cycle is already under way in emerging economies, which is likely to diminish gold’s appeal as a hedge against an uncertain economic environment.

The latest data showed Japanese factory output rose in January for a third straight month and manufacturers expect further gains in coming months, a sign that the economy is on track for a moderate export-driven recovery.

The physical market has remained calm, with Thailand and Indonesia selling scrap and some investors buying gold, the Singapore-based dealer said.

In local money market, dollars are quoted at VND21,900 –VND 21,950 for bids and ask respectively. – Stoxplus.com

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