Vietnam gold At 2-month high, dollar surges VND40

Local gold prices touched the 2-month high of VND28.40 million on August 17, up VND100,000 from last close while dollar prices rose by VND40 to VND 19,350 in free market.

On Tuesday, SJC’s bullion gold’s bid and ask were listed at VND 28.35 million and VND28.39 million/tael at 11a.m. SBJ bullion’s bid and ask at 10 a.m were listed at VND28.36 million and VND28.39 million/tael, up near VND200,000 from yesterday morning. A tael is equal to 1.2 ounce.

Bid and ask of Thang Long bullion gold, a product of Bao Tin Minh Chau gold company, were listed at VND28.32 million and VND28.39 million a tael for bid and ask price, respectively, up VND200,000 from yesterday morning.

The trading was sluggish as investors see few speculative opportunities.

In Asia trade, spot gold hit an intraday high of $1,225.10 an ounce before easing to $1,222.55, barely changed from New York’s notional close. Gold rose as high as $1,227.15 on Monday, its highest since early July.

U.S. gold futures for December delivery were barely changed at $1,226.7 an ounce. The contract also rose to its highest in more than a month on Monday on weaker dollar and high degree of uncertainty about the global economic recovery.

Dealers in Hong Kong and Singapore saw a mixture of buying from investors and selling from jewellery makers, with bullion prices already rebounding more than 5% since falling to a 3-month low in late July.

“We can say buying from investors have pushed the market up. The economy is uncertain,” said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

“I think we say are slightly bullish for the time being but we may see a little bit of a correction. We may slip to $1,115 and $1,120 and find support there. Selling in physicals caps the market,” he added.

According to Reuters market analyst Wang Tao, spot gold may retrace to $1,211 per ounce or lower to $1,190, as a strong resistance is observed at $1,224.

Bullion struck a record around $1,264 in June on worries the euro debt crisis was spreading.

In the local forex market, dollar prices rose up to VND40 from yesterday at gold shops but stabilized at Vietcombank.

Dollar prices at gold shops rose to VND19,320 and VND19,340 for bid and ask, respectively, up VND40 from last close while Vietcombank’s dollar bid and ask were listed unchanged at VND 19,098 and VND 19,100.

In global forex market, the U.S. dollar headed toward a 15-year low against the yen on Tuesday. – Stoxplus

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