Aug 30: Vietnam gold falls, Dollar holds

Local gold prices on Monday fell VND20,000 from last close to roughly VND28.90million/tael and VND 28.97 million/tael for buying and selling respectively, while dollar prices stayed flat as world gold prices steadied on mixed US data.

Local gold prices on Monday fell VND20,000 from last close to roughly VND28.90million/tael and VND 28.97 million/tael for buying and selling respectively, while dollar prices stayed flat as world gold prices steadied on mixed US data.

SJC bullion in Hanoi was listed at VND28.93/tael and VND28.99million for bid and ask at 9 a.m, down VND60,000/tael from yesterday morning. Sai Gon SJC’s bullion’s bid and ask were listed at VND28.93 million and VND28.97 million/tael.

Sacombank-SBJ bullion’s bid and ask at 9:30 a.m were listed at VND28.92 million and VND28.96 million/tael in Ho Chi Minh city. A tael is equal to 1.2 ounce.

Thang Long bullion gold, a product of Bao Tin Minh Chau was listed at VND28.90 million and VND28.97million/tael for bid and ask down VND120,000/tael from last close.

The gold trading was still under selling pressure as local gold prices reached the year high, meanwhile buying appetite was weak as buyers expected prices to fall further.

In Asia trade, spot gold was quoted slightly lower at $1,235.35 versus Friday’s nominal close of $1,235.70.

U.S. gold futures for December delivery recoiled to $1,237.40 an ounce against $1,237.90 on Friday.

Projected gains in July U.S. personal income later on Monday could keep a lid on bullion’s upside as an improving outlook typically drives more investors away from safe harbors like gold.

“Expectations are that personal income figures will be up, and that’s keeping some people out of gold,” a dealer in Sydney said.

Gold prices got a leg up on Friday after comments from U.S. Federal Reserve Chairman Ben Bernanke raised the prospect of further quantitative easing and the possibility of inflationary pressures.

Lower volume trading due to a bank holiday in the United Kingdom may also help stymie gold’s upside, they said.

Further quantitative easing could potentially see gold heading back towards its record high at $1,264.90 an ounce seen on June 21, analysts said.

The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings stood at 1,298.556 tons versus 1,297.948 tons on Aug. 26.

In the local forex market, dollar prices stay flat in both official and unofficial markets after soaring to around VND19,500 as a result of the State Bank of Vietnam’ devaluating the country the dong by 2.09% against the greenback.

Dollar prices in free market maintained at VND19,490 and VND19,510 for bid and ask, respectively.

Dollar prices at Vietcombank were stable at VND19,475 and VND19,500 (the ceiling rate) for bid and ask.

Cao Si Kiem, the State Bank of Vietnam’s Former Governor sees limited room for dollar deposit interest rates to surge much from now and expected the forex market to be stable.

In global forex market ,the greenback shed against the yen after the Bank of Japan failed to signal aggressive measures to curb yen strength at an emergency meeting. – Stoxplus.com

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