May 11: Vietnam gold hovers edges up, interbank dollar falls further vnd5

Local gold on May 11 rose by VND30,000-VND60,000 to hit VND37.69 million a tael as global spot gold inched up 0.4 % to $1,521.49 an ounce in Asia trade this morning, the inter-bank dollar reference rate fell further by VND5 to VND20,698.

As of 10:40 Hanoi time, Sacombank-SBJ gold as listed at VND37.620 million/tael and VND37.66 million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tn Minh Chau were listed at VND37.56 million/tael and VND37.67million/tael for bid and ask, respectively.

SJC Hanoi was listed at VND37.6 million/tael and VND37.69 million/tael for bid and ask, respectively.

In Asia trade this morning, gold held steady as concerns about China’s high inflation and waning economic growth are seen buoying interest in precious metals.

Spot gold inched up 0.4 % to $1,521.49 an ounce, building on gains in the past three sessions. U.S. gold edged up 0.3 % to $1,521.60.

China’s inflation in April was stronger than expected, at 5.3 % on the year, while industrial output was considerably weaker than forecast.

High inflation and lower economic growth in China, the world’s second-largest economy, are likely to dampen risk appetite and support interest in gold, though reaction to the data was muted.

“Gold is generally benefiting from the return of confidence from investors,” Reuters quoted Darren Heathcote, head of trading at Investec Australia as saying.

“They are very happy buying on the dip, as we see the same old problems hanging around.”

Growing concern over Greece’s fiscal status, dollar weakness and high oil prices continues to fuel nervousness in the financial markets, driving investors to seek safe haven in bullion.

While holdings in the SPDR Gold Trust remained unchanged at a one-year low.

“We saw buying when gold dipped below $1,500 from China, India and Indonesia, but not much scrap selling, as people are still bullish on gold,” said a Hong Kong-based dealer.

Technical analysis echoed bullish sentiment in the physical market, as it indicated that gold could rise to $1,531 in the next 24 hours, said Wang Tao, a Reuters market analyst.

“It’s not beyond reason for gold to reach another record high, but the sell-off last week made some investors more cautious,” said Heathcote of Investec Australia.

“They are not fully committed as yet and are more willing to take profit after decent gains. So it may take a while to see a new record.”

In local money market, the dong rose by VND5 to VND20,698 a dollar sending the exchange cap down to VND20,905/$ on +/- 1% trading band basis. Banks continued to apply negative trading band, offering dollar at VND39-VND44 a dollar lower than midpoint rate.

Vietcombank, Vietnam’s biggest dollar trader, quoted dollar prices at VND 20,570 – 20,650, respectively for bids and ask, up VND10 for bid but down VND30 for offer.

Sacombank quoted dollar prices at VND 20,550 – VND20,650, respectively for bids and ask

Eximbank quoted dollar prices at VND20,540 – VND20,570 for bid and VND 20,645 for offer. – Stoxplus.com

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