Jan 13: Vietnam gold edges down to VND35.81Mln/tael, Dollar eases

Local gold prices on January 13 morning edged down VND50-VND80 to VND35.81million/tael after rising for two consecutive days as the global gold prices slid off two-week high to $1,385.80 an ounce. Meanwhile, dollar prices eased VND30 to VND21,040.

Local gold prices on January 13 morning edged down VND50-VND80 to VND35.81million/tael after rising for two consecutive days as the global gold prices slid off two-week high to $1,385.80 an ounce. Meanwhile, dollar prices eased VND30 to VND21,040 in the free market.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND35.73million/tael and VND35.83million/tael for bid and ask, respectively.

SJC in Hanoi was listed at VND35.75billion/tael and VND35.83million/tael for bid and ask, respectively. Meanwhile, SJC in HCMC was listed at VND35.75million/tael and VND35.81milllion/tael for bid and ask, respectively.

Sacombank-SBJ in Ho Chi Minh was listed at VND35.73million/tael and VND35.81million/tael for bid and ask, respectively.

Local trading was thin, forcing local gold shops reduce bid-ask spread to below VND100,000, the state media reported, yet adding that local gold prices were still VND600,000 than global ones.

In Asian trade this morning, gold eased on Thursday after rising to its strongest in a week in the previous session as strong demand for Portugal’s bond sale eased concern over the debt crisis in Europe.

Investors awaited debt auctions by Spain and Italy later in the day and the release of U.S. jobless claims after a recent pick up in U.S. economic data prompted some economists to beef up growth forecasts for the first half of 2011.

Spot gold fell $1.42 to $1,385.80 an ounce by 0226 GMT after rising as high as $1,388.90 on Wednesday as the U.S. dollar dropped against the euro. U.S. gold futures for February hardly moved, at $1,385.5 an ounce.

“The safe-haven demand for gold may recede temporarily. I would think that gains in gold for the day ahead may be difficult to sustain,” said Ong Yi Ling, investment analyst at Phillip Futures in Singapore.

“I would think that $1,400 would pose some resistance for gold, at least for the time being.”

Gold was off a lifetime high around $1,430 struck in early December, when fears the debt crisis in Europe would spread ignited buying from investors.

But Wang Tao, a Reuters market analyst for commodities and energy technicals, said gold was poised to rebound more to $1,407 per ounce, as indicated by an inverted head-and-shoulders pattern.

In the local market, dollar prices were quoted at VND21,010 and VND21,140, in the free market, representing corresponding decreases of VND30 and VND40 for bid and ask, respectively. – Stoxplus.com

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