Vietnam gold turns round to 39.35m/tael

Local gold on Wednesday morning turned tail to drop nearly 400,000 dong to 39.35 million dong/tael, after hitting fresh all-time high yesterday as global gold prices slid from a record above $1,600 an ounce ending winning streak for 11 consecutive days.

At 9 a.m. Hanoi’s time, Phu Quy’s SJC gold was quoted at 39.25 million dong/tael and 39.35 million dong/tael for bid and ask, respectively.

Meanwhile, Sacombank – SBJ gold in Ho Chi Minh city was listed at 39.26 million dong/tael and 39.34 million dong/tael.

In New York trade last night, gold prices dropped from a record above $1,600 an ounce Tuesday after President Obama announced that a deal had been struck regarding the US deficit and were on track to snap an unprecedented 11-day rally as improved risk sentiment sapped some of the precious metal’s safe-haven demand.

US gold futures for August delivery fell $1.30 to settle at $1,601.10 an ounce.

“People are just stepping back… we are going to end the week with the same concerns that we came into the week with, and people realise that,” said Zachary Oxman, managing director with TrendMax in Encinitas, California, citing the increased buy-orders that flowed in when prices dipped below $1,600.

In the forex market, dollar prices were quoted at 20,580 dong and 20,680 dong per dollar for bid and ask, respectively at Vietcombank. The central bank fixed the reference rate at 20,608 today, unchanged since July 11, according to its website. The currency is allowed to trade up to 1 percent on either side of the rate. – Stoxplus.com

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