Aug 1: gold prices undercut vnd40mln threshold

Gold prices on August 1 morning as global prices undercut the threshold of VND40million/tael to VND39.95million/tael as global prices fell more than 1% on Obama announced debt deal.

At 8: 30 a.m. Hanoi’s time, SJC at Bao Tin Minh Chau jewelry company was quoted at VND39.83million/tael and VND39.95million/tael, down VND200,000 from Saturday morning.

In Ho Chi Minh city, Sacombank-SBJ was quoted at VND39.86million/tael and VND39.99 million/tael, down VND170million/tael from last weekend. Meanwhile, SJC bullion at Sai Gon SJC jewelry company was quoted at VND 39.87million/tael and VND39.95million/tael, representing corresponding decreases of VND170,000 and VND200,000 for bid and ask, respectively.

Local trading were active last weekend as local gold prices hit fresh all-time high of VND40.2million/tael.

In New York trade last night, gold fell more than 1% to $1,611.04, off a record high of $1,632.30 set on Friday, after U.S. President Barack Obama said a deal to reduce the country’s deficit had been reached, dampening safe-haven interest that has propelled the precious metal to record highs in recent weeks.

The most-active U.S. gold futures fell as much as 1.4% to $1,608.2, but recovered to $1,613.70 an ounce by 0126 GMT.

President Barack Obama announced on Monday that Democrats and Republican leaders had reached an agreement to reduce the U.S. deficit [cnbc explains] and avoid default.

The Senate is likely to vote on the proposed agreement on Monday, and John Boehner, speaker of the House of the Representatives, said he would bring it to a vote in that chamber as soon as possible.

“People are selling gold as it seems a done deal now,” said a Singapore-based trader.

A firmer dollar following the end of the lengthy and frustrating debt ceiling talks could further pressure gold priced in the greenback.

Speculators, anticipating an agreement on the debt ceiling, cut their long positions in gold last week, even as bullion rallied to record highs, the U.S. Commodity Futures Trading Commission data showed.

“People are still waiting to see details and whether the plan will pass the vote of the Congress,” said Ong Yi Ling, an analyst at Phillip Futures.

“However, the fact that the framework is now available and lawmakers are close to an agreement is reducing the safe haven flow.”

In the forex market, the SBV keep reference rate unchanged for the third consecutive week at VND20,608. Dollar asks were quoted at VND20,814 at local commercial banks. – Stoxplus.com

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