Dec 9: Vietnam gold falls VND120,000/tael Dollar eases to VND21,000

Gold prices on December 9 fell VND120,000 to VND35.7 million/tael as the world gold prices dropped world gold prices fell more than 1 percent to settle below $1,384 in New York trade last night.

Gold prices on December 9 fell VND120,000 to VND35.7 million/tael as the world gold prices dropped world gold prices fell more than 1 percent to settle below $1,384 in New York trade last night. Meanwhile, dollar prices eased to VND21,000 in the free market.

SJC gold was listed at VND35.7 million/tael and VND35.82million/tael for bid and ask, respectively.

Sacombank-SBJ gold was listed at VND35.73million/tael and VND35.79million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND35.75million/tael and VND35.79million/tael for bid and ask, respectively.

In Asian trade this morning, spot gold firmed a notch after sliding more than one percent in the previous session, as a dollar rally paused, and resilient physical demand in Asia provided support.

Spot gold gained 0.4 percent to $1,386.75 an ounce in Asian trade, after falling to a one-week low of $1,371.45 on Wednesday. It reached an all-time high of $1,430.95 on Tuesday.

U.S. gold futures edged up 0.3 percent to $1,387.6.

“The rise in U.S. treasury yield triggered some long liquidation in metals, not only in gold. If you look at the commodities as whole, there’s profit-taking,” said a Hong Kong-based trader.

Traders said as the year end approaches, market liquidity is expected to thin out and participants are increasingly square books to take profit before the holidays.

“In the short term things are turning a little bit bearish, after testing the record high on Tuesday. It would not be a surprise even if it correct even further and test the short-term support around $1,370.”

Spot gold is expected to rebound into a range of $1,394 and $1,401, as an ascending trendline provides support to hold up the sharp correction, the newswire Reuters quoted Wang Tao, its market analyst as saying.

Light physical buying was spotted in early Asian trade, while scrap selling was limited, he said.

“Interestingly we don’t see too much gold scrap falling back into the market, after price hit record high. Everybody is still bullish,” said Dick Poon, manager of precious metals at Hareaus in Hong Kong.

Poon said physical buying from manufacturers has subsided, while investors, betting on further price rise, continued to buy on the dip.

Premium in Hong Kong for the bullion was little changed at 80 cents to $1 above London prices, Poon added.

Holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust continued to slip, down 2.43 tonnes to $1,295.296 tons by Dec 8.

In the local market, dollar prices were quoted at VND21,000 and VND21,120 for bid and ask, respectively. – Stoxplus.com

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