Dec14: Vietnam gold surges to VND36.31Mln

Gold prices on December 14 morning soared to VND36.31million/tael as world gold prices rose to settle above $1,397 an ounce.

Gold prices on December 14 morning soared to VND36.31million/tael as world gold prices rose to settle above $1,397 an ounce.

SJC was listed at VND36.15million/tael and VND36.31million/tael for bid and ask, respectively, up VND190,000 from last close.

Sacombank-SBJ was listed at VND36.14million/tael and VND36.24million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND36million/tael and VND36.10million/tael for bid and ask, respectively.

In New York trade last night, spot gold was last bid around $1,394 an ounce after a 2% decline last week, with investors buying bullion as the dollar weakened, China kept interest rates steady and a U.S. tax cut extension loomed. U.S. gold futures for December delivery settled up $13 to end at $1,397.30 an ounce.

On the investment side of the gold market, holdings of the world’s largest gold-backed exchange-traded fund, New York’s SPDR Gold Trust declined by a further 3.95 tons on Friday.

The trust saw outflows of 8.2 tons of metal last week, or 0.6% of its total gold holdings, its biggest one-week outflow since early October. It is still the world’s sixth-largest holder of gold, ahead of Switzerland and Japan.

The dollar fell, partly on concern a tax cut extension could swell the U.S. budget deficit. This gave gold a boost, as did signs that inflation is heating up in China, which has so far refrained from raising interest rates.

Frank McGhee, head precious metals trader of Integrated Brokerage Services in Chicago, said the prospect of a deal to extend U.S. tax cuts, which will increase fiscal deficit and could lead to inflation, underpinned gold.

The $858 billion package, which would keep lowered income-tax rates from expiring at year end, was expected to clear a procedural vote in the U.S. Senate Monday.

Investors also had an eye on Federal Reserve policy makers who meet Tuesday. The Fed’s bond buying program has boosted gold in recent months as investors worry that loose monetary policy could eventually lead to a loss of purchasing power.

Adam Hewison, president of MarketClub.com, said gold could rise further after breaking above key resistance at $1,394 an ounce on a spot basis, which triggered a buy signal according to his technical models.

Hewison, however, said gains near year end are vulnerable to pullbacks as a small buy order could lift gold sharply without significant volume as most traders are out.- Stoxplus, Reuters

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