Vietnam gold plunges VND500,000 to VND32.9Mln, Dollar hits VND20,050

Local gold prices on October 20 morning slid VND500,000 off the all-time high to VND32.8million-VND32.9million, while dollar prices extended its rising momentum to VND20,050 in the free market.

Local gold prices on October 20 morning slid VND500,000 off the all-time high to VND32.8million-VND32.9million, while dollar prices extended its rising momentum to VND20,050 in the free market.

At 9:05 a.m., Ho Chi Minh’s SJC bullion was listed at VND32.8million/tael and VND32.9million/tael for bid and ask, respectively, down VND70,000/tael from opening prices.

Bid and ask of Phu Quy’s SJC in Hanoi was listed at VND32.83million/tael and VND32.95million/tael, respectively.

Meanwhile, Samcombank-SBJ bullion in Ho Chi Minh was listed at VND32.84million/tael and VND32.94million/tael, down VND450,000-VND500,000 from last close.

Local gold trading was lackluster this morning as investors stayed on the sidelines on price volatility. Bid and ask spread were mostly narrowed to VND100,000/tael to encourage profit-taking activities.

In Asia trade this morning, spot gold was flat at $1,336 an ounce by 0242 GMT. It fell to a two-week low of $1,334.45 on Tuesday, compared to an all-time high of $1,387.10 hit last week.

Holdings in the SPDR Gold Trust slipped less than one ton to a one-week low of 1,300.089 tons.

A bout of buying from bargain hunters in the region helped stabilize prices in early Asian trade, dealers said.

“We are seeing a little bit of bargain-hunting. The market has not really seen a turnaround, even though there are talks of correction,” said Ronald Leung, a physical dealer at Lee Cheong Gold Dealers in Hong Kong.

“In the short term, gold will be under pressure, as investors switch over to the dollar from commodities. In addition, some investors have chosen to close their positions after sizeable profit,” said Hou Xinqiang, an analyst at Jinrui Futures in China.

In the global market, the dollar soared at the news, and held steady on Wednesday morning as investors poised to cut short positions.

In the local forex market, dollar bid and ask prices at gold shops gained VND20 to VND20,000 and VND20,050 for bid and ask. Vietcombank’s dollar bid and ask were unchanged at VND19,490 and VND19,500, respectively.

The Governor on October 19 refuted the rumors of another dong devaluation by affirming that “the SBV hasn’t set any plan to adjust the dollar/dong exchange rates”, adding that the central bank will likely take actions to improve the liquidity in the market in the coming time. – Stoxplus.com

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