Vietnam gold rebounds to new all-time high of VND33.37Mln, Dollar surges

Local gold prices on October 19 regained to the lifetime peak of VND33.4million/tael, up VND250,000/tael from yesterday morning while dollar prices touched the threshold of VND20,000 in the free market.

Local gold prices on October 19 regained to the lifetime peak of VND33.4million/tael, up VND250,000/tael from yesterday morning while dollar prices touched the threshold of VND20,000 in the free market.

Samcombank-SBJ bullion in Ho Chi Minh was listed at VND33.32million/tael and VND33.36million/tael, respectively.

At 10:08 a.m., Ho Chi Minh’s SJC bullion was listed at VND33.31million/tael and VND33.37million/tael for bid and ask, respectively, representing a responsive increase of VND80,000 and VND70,000 from the opening prices.

Meanwhile, Phu Quy’s SJC in Hanoi was listed at VND33.29million/tael and VND33.37million/tael.

Buying interest for physical gold surged after gold prices eased a bit yesterday, boosting up gold prices to the fresh all-time high, said local gold traders.

A reasonable price range to buy gold for hoard is between VND32million and VND32.2million, Sacombank-SBJ gold-trading company suggested.

In Asia trade this morning, spot gold was little changed at $1,368.95 an ounce by 0324 GMT, after moving in a tight range of less than $2 in the previous session. U.S. gold futures fell 0.2% to $1,369.6.

“Gold is likely to continue the rally before the Federal Reserve meeting in early November. Unless the Fed announces quantitative easing to a huge extent, gold will retrace,” said Zhu Yilin, general manager of the research and development department of Jingyi Futures in Shanghai.

“It’s all about buying the anticipation. Once the result is out, it’s time to close positions.”

“The support level is at $1,350. Gold is likely to trade around the current level, until we know how much the stimulus is going to be,” said a Hong Kong-based dealer.

In the global market, the dollar rose nearly half a percent against a basket of currencies, extending gains made in the previous session after Treasury Secretary Tim Geithner said the United States would not engage in dollar devaluation.

In the local forex market, dollar held at commercial banks but extended its rising momentum at gold shops.

Vietcombank’s dollar bid and ask were unchanged at VND19,490 and VND19,500. Meanwhile, those at the black market soared to VND19,935-VND20,000 this morning, attributing to the market rumors of a dong devaluation.

However, the Governor refuted the bias 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