Vietnam gold rebounds to near VND36Mln as Dollar soars

Gold prices on December 16 morning regained VND100,000 to VND35.94million/tael after falling by over VND300,000/tael this morning as dollar prices rose to VND21,130 in the free market .

Gold prices on December 16 morning regained VND100,000 to VND35.94million/tael after falling by over VND300,000/tael this morning as dollar prices rose to VND21,130 in the free market .

At 11:15 a.m., SJC in Hanoi was listed at VND35.85million/tael and VND35.94million/tael for bid and ask, respectively, up VND100,000 from early morning but still VND20,000 lower than last close.

Sacombank-SBJ in Ho Chi Minh was listed at VND35.85million/tael and VND35.89million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND35.74million/tael and VND35.84million/tael for bid and ask, respectively.

Earlier at 8:30, local gold prices tumbled by VND370,000 after plunging VND500,000 yesterday, the Vnexpress reported. However, bid and ask advanced VND70,000 and VND90,000 to VND35.72million/tael and VND35.8million/tael, respectively, after only half an hour .

In Asian trade this morning, spot gold was nearly flat at $1,380.70 an ounce by 0315 GMT, after declining in the previous session on the dollar rally following Moody’s move to put Spain on review for a possible downgrade. U.S. gold futures edged down 0.3% to $1,381.5.

Holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, edged down less than one ton to 1,286.187 tons, its lowest since late November.

“So long as the U.S. doesn’t raise interest rates, gold will remain strong, and people are looking at $1,500 or even $1,600 price levels for next year,” said a Hong Kong-based dealer.

“China has been tightening, but it would be reluctant to raise interest rates rapidly, fearing the inflow of hot money.”

Gold was expected to trade in the range of $1,370 to $1,420 in the last few weeks of the year, he added.

Investors are watching the European Union leaders start a two-day summit on Thursday, hoping to find a solution to the region’s sovereign debt crisis.

“After averaging around the $1,375 per ounce level in the March quarter 2011, we expect the gold price to gradually ease as the global recovery looks better entrenched and investor jitters abate,” said a research report by National Australia Bank.

“Even so, the gold price should hold up quite well next year with some ongoing investment demand and a further recovery in jewelry consumption being supportive factors.”

In the local market, dollar prices were quoted at VND21,070 and VND21,130 for bid and ask, respectively in the free market. Meanwhile, those at Vietcombank are capped at VND19,490 and VND19,500 for bid and ask, respectively. – Stoxplus.com

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