Jan 27: Vietnam gold surges to VND35.35Mln/tael

Local gold prices on January 27 morning surged VND150,000- VND170,000 to VND35.35million/tael as global gold ticked higher to $1,333 an ounce.

At 9:12 a.m., Sacombank-SBJ in Ho Chi Minh was listed at VND35.25million/tael and VND35.31million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND35.26million/tael and VND35.35million/tael for bid and ask, respectively.

SJC in Hanoi was listed at VND35.24million/tael and VND35.32million/tael for bid and ask, respectively. Meanwhile, SJC in HCMC was listed at VND35.24million/tael and VND35.3milllion/tael for bid and ask, respectively.

In Asian trade this morning, spot gold was last bid around $1,332 an ounce, against $1,332.75 late in New York on Tuesday. U.S. gold futures for February delivery settled up 70 cents to end at $1,333 an ounce.

The SPDR Gold Trust, the world’s biggest gold-backed ETF had its largest one-day outflow on record on Tuesday, reflecting a decline in investor interest.

Barclays Capital said outflows from a range of gold ETFs had brought overall holdings to their lowest in five months.

When the Federal Reserve releases its decision on U.S. monetary policy, investors are not expecting the central bank to unveil any change in the benchmark interest rate, but they will seek confirmation from the bank that its focus remains on supporting growth.

“Gold hasn’t adjusted to a world in which interest rate rises are conceivable particularly well, and some investors seem to think enough is enough,” said Mitsubishi analyst Matthew Turner.

“We could see further weakness, particularly if the economic data continues to be strong worldwide. However with major problems remaining in the eurozone and U.S. economies, it is doubtful this signals the end of the gold bull market.”

This echoes the views of ETF Securities head of research Nick Brooks, who told a journalists’ conference call on Wednesday that the ongoing fiscal problems of developed economies, coupled with rising inflation around the globe, would likely feed demand for gold.

“Ultimately, the demand for gold will remain firm and will come back but we’re going through a period where there is a lot of profit-taking coming through,” he said. – Stoxplus.com

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