Nov 18: Vietnam gold soars to VND35.5Mln, Dollar edges down

Vietnam gold prices on November 18 surged VND35.5million/tael, up over VND1million from last close as world gold prices rose nearly one percent after losing streak for four consecutive sessions. Meanwhile, local dollar prices edged down to VND20,970.

Vietnam gold prices on November 18 afternoon surged VND35.5million/tael, up over VND1million from last close as world gold prices rose nearly one percent after losing streak for four consecutive sessions. Meanwhile, local dollar prices edged down to VND20,970.

At 4 p.m, SBJ was listed at VND35.36million/tael and VND35.54million/tael for bid and ask, respectively.

SJC was listed at VND35.3million/tael and VND35.52million/tael for bid and ask, respectively.

Bid and ask of Thang Long bullion, a product of Bao Tin Minh Chau were listed at VND35.3million/tael and VND35.58million/tael for bid and ask, respectively.

Local trading remained lackluster after the State Bank of Vietnam gave gold import quota to local gold traders on November 9. Gold traders said local gold market returned to its stable position, and signs of gold bubble were cleared after the central bank’s efforts to cool down gold fevers.

“With the central bank’s measures to stabilize gold market, local gold prices will retreat further. Reasonable prices for investors to get on board are from VND33million/tael to VND34million/tael”, said the Sacombank – SBJ.

In Asian trade this morning, spot gold gained nearly one percent to $1,348.55 an ounce by 0316 GMT, after falling for four consecutive sessions. U.S. gold futures rose by 0.8 % to $1,347.8.

Holdings of the SPDR Gold Trust, the world’s largest gold exchange-traded fund gained 0,3% in the past month.

Spot gold is expected to fall to $1,317 per ounce as a bear trend has established and a wave “c” or wave “3″ will unfold, said Wang Tao, a Reuters market analyst.

“People expect the dollar to further deteriorate, which gives a strong incentive to buy into gold,” said Ellison Chu, a senior manager at Standard Bank in Hong Kong, adding that short-covering was seen around the current price level.

“They are building up another round of long positions.”

In the global market, the dollar lost about 0.2% against a basket of currencies, after rallying to seven-week highs.

In the local market, dollar prices at the gold shops were quoted at VND20,910 and VND20,970 for bid and ask, respectively. Meanwhile, those at Vietcombank are capped at VND19,490 and VND19,500 for bid and ask, respectively. – Stoxplus.com

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