Vietnam gold extends losing track, illegal Dollar trading cracked down – Mar 11

Local gold prices on March 11 extended losses, and broke down the VND37 million threshold on the crackdown of illegal dollar trading and the plan to close bullion trade weighed.

As of 16:00 Hanoi time, Sacombank-SBJ gold as listed at VND36.81 million/tael and VND36.91 million/tael for bid and ask, respectively, down VND40,00 from yesterday afternoon trade.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND36.70 million/tael and VND36.85 million/tael for bid and ask, respectively, down VND60,000.

SJC in Hanoi was listed at VND36.8 million/tael and VND36.92 million/tael for bid and ask, respectively, meanwhile, SJC in HCMC was listed at VND36.8 million/tael and VND36.9 milllion/tael for bid and ask, respectively, down VND50,000.

In Euro trade this afternoon, gold ticked up after reports of police firing on protesters in Saudi Arabia ignited fears of further Middle East unrest, but bullion was on track for its biggest weekly decline since late January, down more than $20 from a lifetime high hit at the start of the week.

Spot gold added $3.30 to $1,415.89, but a surging U.S. dollar was likely to cap gains. Gold hit a record of $1,444.40 on Monday.

U.S. gold futures for April rose $3.9 to $1,416.4 an ounce. The contract hit record at $1,445.70 on Monday.

Spot gold will fall more next week to a range of $1,360 to $1,376 per ounce based on its wave pattern and a Fibonacci retracement analysis, according to Wang Tao, who is a Reuters market analyst for commodities and energy technicals.

China’s February inflation data, which offered tentative signs the government is succeeding in tamping price pressures, helped boost gold on Friday. Soaring inflation in China had sparked worries it could cut the country’s demand for commodities, including gold.

Further monetary tightening to tamp inflation in China however remains a possibility.

“I think we are still expecting robust demand from China. But I think the Chinese buying is more on a longer-term basis, so I guess the situation in Saudi Arabia is still a major factor supporting gold,” said a dealer in Singapore.

“There’s quite a lot fluidity regarding the situation there. I think there’s a potential for some headline risks.”

In local money market, the dong strengthened after 3 day losing run and it was traded at 20,870 and 20,875 per dollar for bid and ask, respectively at Vietcombank and BIDV.

The central bank weakened the daily reference rate to VND20,668 from VND20,673, according to its website. The currency is allowed to trade up to 1% on either side of that midpoint.

Vietnam is cracking down on unauthorized trading in U.S. dollars in an effort to bolster the country’s dwindling foreign reserves and restore confidence in the local currency.

Gold shops in local provinces closed dollar trading, following suit those in Hanoi and Ho Chi Minh fearing a crack-down where police will join hands to investigate illegal dollar trading. – Stoxplus.com

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