Feb 24: Vietnam gold eases to VND37.67Mln/tael, Dollar down

Local gold prices on February 24 fell by between VND30,000 and VND100,000 to VND37.55-VND37.67million/tael though global gold prices rose to settle at $1,414 an ounce. Dollar prices fell VND50 to VND20,070 in the black market.

Sacombank-SBJ gold as listed at VND37.55million/tael and VND37.65million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND37.53million/tael and VND37.67million/tael for bid and ask, respectively.

SJC in Hanoi was listed at VND37.52million/tael and VND37.62million/tael for bid and ask, respectively. Meanwhile, SJC in HCMC was listed at VND37.52million/tael and VND37.6milllion/tael for bid and ask, respectively.

In Asian trade, gold rose to settle at $1,414 on Wednesday, as escalating unrest in Libya and soaring crude oil prices fueled fears of inflation and a stalled global economic recovery.

Spot gold was last bid around $1,414 an ounce, against $1,399.20 late in New York on Tuesday. U.S. gold futures for April delivery settled up $12.90 to end at $1,414 an ounce.

“This move in gold right now is acutely about the Middle East. The trade is about fear but people are viewing it as an extension of the inflation trade,” said James Dailey, portfolio manager of the TEAM Asset Strategy Fund.

U.S. crude oil futures marched rapidly to hit $100 a barrel on possible supply disruption from Libya, stoking inflation concern.

A 2.4-% rise in gold last week raised concerns the metal was at unsustainable levels, but news from Libya supported prices as leader Muammar Gaddafi vowed to crush a mounting revolt against his four decades of rule.

“It is dominated by the Middle East fears and the weaker dollar,” Standard Bank analyst Walter de Wet said of the market.

“We think we could easily test the highs again for gold,” he added. “It could go all the way to $1,440 till it starts looking a bit stretched from a fundamental perspective.”

The world’s largest gold-backed ETF, the SPDR Gold Trust said holdings dropped to 1,218.243 tons on Tuesday from 1,223.098 tons a day before.

In local market, dollar prices are quoted at VND21,900 and VND 22,070 for bid and ask, respectively in the free market, while those at Vietcombank are quoted at VND20,885 and VND20,895 for bid and ask, respectively.

The SBV today weakened the reference rate midpoint to VND20,688 from VND20,683 yesterday, allowing the domestic currency to trade up to 1% on either side of the midpoint. – Stoxplus.com

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