Feb 22: Vietnam gold plunges to VND37.79Mln/tael, Dollar down

Local gold prices on February 22 fell VND500,000 to VND37.79 million/tael as dollar prices retreated to the VND22,00 threshold in the black market.

Sacombank-SBJ gold as listed at VND37.67million/tael and VND37.79million/tael for bid and ask, respectively, down VND450,000 from early trade.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND37.65million/tael and VND37.95million/tael for bid and ask, respectively, down VND500,000 from this morning.

SJC in Hanoi was listed at VND37.72million/tael and VND37.82million/tael for bid and ask, respectively. Meanwhile, SJC in HCMC was listed at VND37.72million/tael and VND37.82milllion/tael for bid and ask, respectively.

Earlier this morning, gold surged VND400,000 to VND38.3million/tael as dollar prices edged up to VND22,050 and VND22,170 for bid and ask, respectively in the free market.

In Asian trade, gold slipped $4.05 an ounce to $1,401.90 on Tuesday after rising to its highest in seven weeks, but sentiment was still underpinned by deadly unrest in North Africa and the Middle East as well as uncertainty over the future of oil prices, while silver jumped to its strongest level since 1980.

Bullion was below a lifetime high around $1,430 struck in December. U.S. gold futures for April rose $13.7 to $1,402.3 an ounce.

High oil prices sparked by violence in Libya fed fears of inflation, one of the main concerns of investors, who are otherwise in a generally bullish mood on expectations that the global economic recovery is now sustainable. Libyan leader Muammar Gaddafi appeared on state television signaling his defiance and saying he had not fled a revolt against his 41-year rule.

“I think the current situation there is really akin to a keg of dynamite,” said Ong Yin Ling, investment analyst at Phillip Futures in Singapore.

“Whether Gaddafi will be toppled or whether we will witness a revolution, I think the final outcome is still uncertain. But the situation is likely to get worse before it gets better. Going forward (gold) could still remain supported due to the crisis, which is unlikely to be resolved anytime soon.”

In other markets, the dollar edged up against a basket of major currencies, while the Nikkei fell for the first time in seven days, moving away from its highest levels in over nine months, as the Middle East turmoil triggered profit-taking in overbought blue-chip shares.

In local market, dollar prices are quoted at VND22,000 and VND 22,100 for bid and ask, respectively in the free market, while those at Vietcombank are quoted at VND20,785 and VND20,885 for bid and ask, respectively.

The SBV today weakened the reference rate midpoint to VND20,678 from VND20,673 yesterday, pulling the domestic currency down the first time after extending gains for 10 straight days

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