Oct 11: Vietnam gold surges to VND32.75Mln, Dollars regain

Local gold prices on October 11 soared VND300,000 to VND32.75million/tael, while dollar prices in the free market rebounded to VND19,810-VND19,860 for bid and ask, respectively after an ease at weekend.

Local gold prices on October 11 soared VND300,000 to VND32.75million/tael, while dollar prices in the free market rebounded to VND19,810-VND19,860 for bid and ask, respectively after an ease at weekend.

Samcombank-SBJ bullion in Ho Chi Minh at 9:45 a.m was listed at VND32.64million/tael and VND32.74million/tael after being adjusted over 4 times this morning, up over VND300,000/tael from weekend. SBJ’s bid and ask spread were narrowed VND230,000/tael from the peak of VND430,000/tael.

Ho Chi Minh’s SJC bullion at 9:44 a.m was listed at VND32.65million/tael and VND32.73million/tael for bid and ask, respectively, up VND150,000-VND130,000 from the opening prices, while Hanoi’s SJC was sold at VND32.75million/tael .

At 9 a.m., bid and ask of Thang Long bullion gold, a product of Bao Tin Minh Chau gold company were listed at VND32.55million/tael and VND32.75 million/tael, respectively.

Local trading this morning remained lackluster as gold investors remained skeptical on gold price volatility. Local gold prices are VND550,000/tael higher than global ones (converted) as dollar prices at commercial banks are applied.

Earlier on late October 7, the country’s central bank officially gave ten local gold-trading firms a gold import quota of 200kg-300kg each. However, the move hardly helps to ease the gold market sentiment or cool down local gold prices.

In Asia trade this morning, spot gold rose 0.7% to $1,353 an ounce. It hit an all-time high of $1,364.60 last week.

U.S. gold futures for December delivery were up 0.7% at $1,354.1.

Gold may rise to $1,367 an ounce, as a bullish pennant has been confirmed, said Wang Tao, a Reuters market analyst.

Gold output in China, the world’s largest gold producer, fell 11% on the month to 27.655 tons in August, but total production in the first eight months gained 8.85% from a year earlier.

“In the short term, gold will still look at the economic picture. If economic data turns out weaker than expected, it will raise expectations of quantitative easing, which will be positive for gold,” said Ong Yi Ling, an analyst at Phillip Futures.

Continuous weakness in the U.S. dollar also lends support to bullion. The dollar slid to 15-year lows versus the yen on Monday as soft jobs data fuelled expectations of more quantitative easing, while the IMF and G7 meetings produced nothing to avert a cycle of competitive depreciation.

Meanwhile, dollar prices in the local forex market held at both unofficial and official market.

Dollar bid and ask prices at gold shops rebounded to VND19,810-VND19,860, a corresponding increase of VND40-VND20 from weekend. Vietcombank’s dollar bid and ask were unchanged at VND19,475 and VND19,500. – Stoxplus.com

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