Aug 26: Vietnam gold rebounds to vnd46mln/tael, back market dollar heats up

Vietnam gold today soared over VND1 million at the open to VND46 million/tael following global rebound of $45/ounce, dollar prices heated up on speculation.

As of 9:00 Hanoi time, Sacombank-SBJ gold was listed at VND45.61 million/tael and VND45.99 million/tael for bid and ask, respectively, up VND0.5 million a tael from yesterday morning, but around VND1 million higher than yesterday close.

SJC in Ho Chi Minh City was listed at VND45.6 million/tael and VND46 million/tael for bid and ask, respectively rising VND1.2 million a tael from yesterday close of VND44.4-44.8 million/tael.

Despite central bank and big local gold traders’ effort to reduce local gold premium and to get price parity between the local and international markets, Vietnam’s gold price is still VND1.5 million/tael or $59/ounce higher than global market (VND21,000= $1).

Global markets: Gold Rebounds, Investors Eye Bernanke’s Speech

Spot gold steadied on Friday after rebounding in the previous session, as investors awaited a speech by U.S. Federal Reserve Chairman Ben Bernanke later in the day.

In New York last night, spot gold was last up 0.4 % at $1,758.30 an ounce in choppy trade, having touched a near two-week low of $1,702.44. US gold futures rose $5.9 to settle at $1,763.20 Trading volume was heavy for a third straight day, on pace to be one of the highest this year.

In Asia trade this morning, spot gold edged down 0.3 % to $1,763.71 by 0102 GMT. U.S. gold inched up 0.2% to $1,766.90.

“The psychology of the market has changed materially, and those who bought gold in the past 15 or so trading sessions are in trouble and will be sellers on rallies,” said independent investor Dennis Gartman.

All eyes are on Bernanke’s speech in Jackson Hole scheduled for 1400 GMT, with markets eager to hear what the Fed’s plan is to help a struggling U.S,. economy, although the growing consensus is that the Fed’s options to stimulate the economy are limited.

More quantitative easing from the Fed could lift gold’s inflation-hedge appeal. But the lack of additional action by the Fed could accelerate gold’s correction.

SPDR Holdings Stable

Holdings in the SPDR Gold Trust remained unchanged at 1,232.314 tons

Local Dollar Heats Up

Vietnam’s central bank kept the U.S. dollar’s exchange rate to VND20,628 unchanged for a third day. However, local banks and gold shops raised dollar offer on rising demand.

It is reported that commercial banks started charged retail customers and businesses 1% fee when they buy dollar, boosting the dollar prices to VND21,000 higher than the ceiling rate of VND20,834, local newswire VnExpress reported August 25.

Gold shops in Hanoi and Ho Chi Minh city raised dollar prices to VND20,950-VND21,100 for bid and ask, respectively. – Stoxplus.com

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