Aug 19: Vietnam gold near VND29Mln, Dollar surges to VND19,520 in free market

Local gold prices are heading to VND29million a tael on August 19, while dollar prices rose to VND 19,520 in free market as world gold prices rose and Vietnam devaluated its currency by 2.09%.

Local gold prices are heading to VND29million a tael on August 19, while dollar prices rose to VND 19,520 in free market as world gold prices rose and Vietnam devaluated its currency by 2.09%.

SJC’s bullion’s bid and ask were listed at VND 28.57 million and VND28.67million/tael at 9 a.m this morning. SBJ bullion’s bid and ask at 9 a.m were listed at VND28.66 million and VND28.70 million/tael, up VND140,000/tael from yesterday morning. A tael is equal to 1.2 ounce.

At 10 a.m, Thang Long bullion gold, a product of Bao Tin Minh Chau was listed at VNd28.67 and 28.74 million/tael for bid and ask, respectively, up VND300,000 from last close.

The higher prices fluctuation boosted up trading activities as traders jumped in to take some profit.

In Asia trade, spot gold was last traded around $1,229 an ounce late Wednesday, up from $1,222.90 late in New York on Tuesday. US gold futures for December delivery settled up $3.10 at $1,231.40 per ounce.

The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings rose to 1,294.604 tons by Aug. 17 from 1,286.699 tons on Aug. 12. The holdings hit a record at 1,320.436 tones on June 29.

Gold is strengthening its inverse correlation relationship with the dollar and a positive link with the euro, analysts said.

The 25-day simple correlation between gold and the dollar fell to a plus 0.1 on Monday, sharply lower than a high of over plus 0.8 earlier in August.

After trading in a broad range for two months, gold has rallied this week on worries about a double-dip recession after a flurry of weak economic data and the Federal Reserve’s downgrade of its economic outlook.

On charts, gold is poised to challenge its all-time high at $1,264.90 an ounce set on June 21, after the metal held above $1,160 an ounce back in late July.

In the local forex market, dollar prices surged at both the official and unofficial market. Massive dollar price hike was seen after the SBV’s move of devaluating the country’s currency, the dong, by 2.09% to VND18,932 to a dollar on August 17.

Dollar prices in free market rose to VND19, 480 and VND19,520 for bid and ask, respectively, up VND40 from the last close. Meanwhile, dollar prices listed by Vietcombank rose to VND19,245 and VND19,460 for bid and ask, respectively, up VND150 from yesterday.

However, in global forex market, the dollar fell sharply against a basket of major currencies in earlier trade, resuming its usual inverse correlation with the U.S. currency that reappeared recently. The dollar index traded flat in later sessions. – Stoxplus

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