July 19: Vietnam gold heads to vnd40mln/tael threshold

Local gold on Tuesday morning extended its winning streak to fresh all-time high of VND39.56millio/tael as global gold prices marched to a record above $1,600 an ounce, stretching its rally to an unprecedented eleventh day.

At 9 a.m. Hanoi’s time, SJC gold at Bao Tin Minh Chau was quoted at VND39.46 million/tael and VND39.56million/tael for bid and ask, up VND 360,000 from yesterday morning; while those at SJC Hanoi were quoted at VND39.44million/tael and VND39.54million/tael.

Meanwhile, Sacombank – SBJ gold in Ho Chi Mih city was listed at VND39.43million/tael and

In New York trade last night, spot gold rose as high as $1,607.01 an ounce and was up 0.7% at $1,603.89 an ounce on fears that U.S. lawmakers could fail to raise the debt ceiling to avert a default.

Bullion has gained 8% in 11 days as President Barack Obama and Congress have failed to reach an agreement to raise the $14.3 trillion U.S. borrowing limit with less than three weeks before the Aug. 2 deadline.

Technical charts indicate gold should rise above $1,700 an ounce in the next few months.

“What’s coming out of these debt talks is that you are seeing a lot of people focusing on the numbers and to understand the ramifications of debt burden on countries,” said Robert Lutts, chief investment officer of Cabot Money Management, which manages more than $500 million in assets.

“A move to $2,000 in the next six to nine months is not that crazy in gold,” Lutts said.

U.S. gold futures for August delivery settled up $12.30 at $1,602.40 an ounce after trading between $1,591.40 and $1,607.90. Volume came to 130,000 lots, sharply lower than turnover during last week’s rallies to then-record highs.

In the forex market, the dong was little changed at VND20,555 per dollar. The central bank fixed the reference rate at 20,608 today, unchanged since July 11, according to its website. The currency is allowed to trade up to 1% on either side of the rate. – Stoxplus.com

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