Jan 21: Vietnam gold plunges to VND35.23Mln/tael, Dollar up

Local gold prices fell for the second straight day to VND35.23million/tael, down nearly VND400,000 from yesterday as global gold prices shed to its weakest since Nov. 19 in New York trade last night. Meanwhile, dollar prices rebounded to VND21,040.

At 1:56p.m., Sacombank-SBJ in Ho Chi Minh was listed at VND35.18million/tael and VND35.23million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND35.18million/tael and VND35.23million/tael for bid and ask, respectively.

SJC in Hanoi was listed at VND35.16million/tael and VND35.25million/tael for bid and ask, respectively. Meanwhile, SJC in HCMC was listed at VND35.16million/tael and VND35.23milllion/tael for bid and ask, respectively.

In Asian trade this morning, spot gold edged up recovering from a decline of 2% in the previous session, propped up by physical buying interest, but ebbing investment demand in consequence of an improved economic outlook continued to weigh on prices.

Spot gold gained 0.2% to $1,348.25 an ounce by 0341 GMT, but was on course for a third consecutive week of falls. U.S. gold futures edged up 0.1% to $1,347.8 .

Holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund remained unchanged at 1,251.43 tons valued at $54.124 trillion.

U.S. home re-sales jumped more than expected in December and claims for new jobless claims last week posted their biggest decline in nearly a year.

Spot gold will extend its loss to $1,322, as a downward wave “C” or wave “3″ is progressing, said Wang Tao, a Reuters market analyst.

The recent downturn in gold and silver prices is a healthy correction that will not last long, traders and analysts said.

“There’s some selling pressure still ongoing in the gold market,” said Yingxi Yu, an analyst at Barclays Capital. “But we still expect prices to venture into uncharted territory sometime this year. The macro environment still looks supportive for investment interest in gold.”

An improved economic outlook dampens gold’s safe-haven appeal, but inflation worries down the road may again drive investors to the precious metal, Yu said.

In the global market, the dollar index pared some gains from the previous session, as the euro held its ground with investors wary of getting too bearish on the common currency after a recent rally turned round sentiment.

In the local market, dollar prices were quoted at VND21,000 and VND21,040 for bid and ask, up VND30 in the free market. Meanwhile, those at Vietcombank were capped at VND19,495 and VND19,500 for bid and ask, respectively. – Stoxplus.com

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