Mar 28: Vietnam gold plunges to VND36.82Mln , Dong steady

Local gold on March 28 fell nearly VND200,000 to VND36.82million/tael while global gold slid off the record high hit on March 24 to 1,426.25 an ounce, down 0.1%. Meanwhile, the dong remained steady in the official market.

As of 1: 38 p.m. Hanoi time, Sacombank-SBJ gold as listed at VND36.76million/tael and VND36.85million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND36.74million/tael and VND36.85million/tael for bid and ask, respectively.

SJC in Hanoi was listed at VND36.75million/tael and VND36.84million/tael for bid and ask, respectively, meanwhile, SJC in HCMC was listed at VND36.75million/tael and VND36.82milllion/tael for bid and ask, respectively.

In Asian trade this morning, spot gold edged down 0.1% to $1,426.25 an ounce, off the record high of $1,447.40 hit on March 24. U.S. gold futures were nearly flat at $1,426.60.

The Fed’s money-pumping into the economy has raised concerns of inflation down the road, helping gold extend its record-breaking rally. Some investors had expected the Fed to extend its loose monetary policy, which could further increase demand for gold as inflation hedge.

“The bar for future quantitative easing seems to have been raised, and this is weighing on the sentiment of the gold market,” said Ong Yi Ling, an analyst at Phillip Futures.

“People are holding back, hoping that prices might go lower towards $1,420 before they buy again.”

The fighting in Libya and spreading unrest in other nations in the Middle East, in addition to the nervousness around Japan’s nuclear crisis, are supportive of gold prices, she added.

Technical analysis showed that spot gold could extend Friday’s losses to $1,414, Reuters market analyst Wang Tao said.

Investors will focus on the U.S. non-farm payroll data for February, scheduled for release on April 1, to assess the status of the economic recovery.

“Based on recent data, the number won’t look too bad,” said Hou Xinqiang, an analyst at Jinrui Futures in China. “Gold is likely to go through some correction, with the dollar bottoming out.”

In local official forex market, the dong head steady held steady as the State Bank of Vietnam kept reference rate unchanged at VND20,693 per dollar, the highest level of since February 17, according to the central bank’s data.

The dong was traded at VND20,895 and VND20,900 per dollar for bid and ask, respectively at Vietcombank. – Stoxplus.com

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