Oct 31: Gold continues falling to vnd45.1mln/tael

Vietnam gold continued falling VND0.2 million to VND45.1 million a tael this morning as the world gold prices eased, local dollar prices were kept at VND20.803, unchanged from Friday.

SJC gold in the free market was traded at VND44.700 million and VND45.050 million/tael for bid and ask respectively by 9:30 Hanoi time. SJC Hanoi last quoted at VND44.750 for bid, VND45.070 for ask respectively.

Sacombank-SBJ gold prices were listed at VND44.900 million/tael -VND45.200million/tael for bid and ask, respectively.

Rong Thang Long gold, a product of Bao Tin Minh Chau company, was trading at VND44.650 million/tael and VND45.000 million/tael for bid and ask, respectively.

Of note, the gap between gold prices in the free market and the official market has been narrowed during last few days. The gap was around VND50,000-VND20,000 for bid and ask, respectively, down VND50,00-VND30,000 before.

The move was believed to be the result of the government’s tough administrative measures and the central bank’s reinforcement on gold and forex trading regulations recently.

Global Markets: Gold Eased in New York and Asia Trades.

In the New York trade last Friday, spot gold retreated from a one-month high of $1,751.99 to $1,741.80 an ounce, down 0.1 % from the previous close, but still on course for a gain of around 6 % from a week earlier, the biggest one-week rise in two months.

Gold for December delivery settled 50 cents lower at $1,747.20, also headed for its sharpest one-week gain in two months with a 7 % rise.

In Asia trade this morning, spot gold slightly feel to $1714.89 an ounce As investors are awaiting a key Group of 20 meeting later this week for further trading cues, after the news that European Union summit last week came up with a plan to tackle its debt crisis.

By 9:41 Hanoi time, Kitco quoted spot gold at $1726.50 – 1727.50 for bid and ask respectively.

“It’s underperforming…right now, which is not surprising us at all…although we wouldn’t rule out further consolidation at the current level, we still firmly believe that the risks in the system longer term justify even higher prices,” Reuters quoted Commerzbank analyst Eugen Weinberg as saying.

Local Dollar Stable

Vietnam’s central bank kept the dollar exchange rate unchanged from last Friday at VND20,803 today, , after adding up 14 times from October 5,2011.

Banks added up dollar offer at the ceiling of VND21,011 en mass.

Analysts expected dollar exchange rates to hover around VND22,000 through the year-end and the forex market will move in a limited range

Source TEI/News Writer /Stoxplus

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