Nov 11: Vietnam gold eases to VND36.5Mln, Dollar flat

Vietnam gold prices on November 11 eased to VND36.5million, two day after the State Bank of Vietnam (SBV) gave gold import quota to local banks and enterprises. Meanwhile, dollar prices stayed flat at VND21,100.

Vietnam gold prices on November 11 eased to VND36.5million, two day after the State Bank of Vietnam (SBV) gave gold import quota to local banks and enterprises. Meanwhile, dollar prices stayed flat at VND21,100.

At 11 a.m., SBJ was listed at VND36.36million/tael and VND36.48million/tael for bid and ask, respectively.

Phu Quy SJC in Hanoi was listed at VND36.3million/tael and VND36.47million/tael for bid and ask, respectively.

Bid and ask of Thang Long bullion, a product of Bao Tin Minh Chau were listed at VND36.25million/tael and VND36.5million/tael for bid and ask, respectively.

The State Bank of Vietnam on November 9 granted gold import quotas valid for 14 days to several banks and at least one gold company in a move to calm the domestic market, the state media reported.

“The central bank’s decision had a positive impact on the market sentiment. Local gold prices plunged and the public stopped rushing to buy gold”, said Nguyen Thi Cuc, PNJ Jewelry’s deputy general director.

Local trading remained sluggish as investors stay on the sidelines due to price volatility.

In Asian trade this morning, spot gold gained 0.3% to $1,407.35 an ounce, off the all-time high of $1,424.10 hit on Tuesday. Holdings in the SPDR Gold Trust were little changed from one month earlier, even two months earlier.

A deeply divided G20 struggled to move beyond broad promises of economic cooperation and into thorny issues of exchange rates and trade balances as world leaders gathered in Seoul for a two-day summit.

“People are looking closely at the dollar. Trade may get a bit choppy today because of uncertainties in the G20 meeting,” said a Hong Kong-based dealer.

“Everyone is looking to buy physical gold, instead of holding currency. The second round of quantitative easing in the U.S. just got more people interested in gold.”

“Another reason behind gold’s strength is the active buying in the physical market in Asia. Scrap supply has increased a bit, but not enough to satisfy the demand for physical gold,” said Dick Poon, manager at Heraeus in Hong Kong.

In the local market, dollar prices at the gold shops were quoted at VND21,850 and VND21,100 for bid and ask, respectively. Meanwhile, those at Vietcombank are capped at VND19,490 and VND19,500 for bid and ask, respectively.

In the global market, the greenback paused after four straight days of gains, during which gold shook off the dollar influence and scored a new all-time high, as investors fretted over resurgent euro zone sovereign debt woes. – Stoxplus.com

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