Jan 17: Vietnam gold eases to VND35.57Mln/tael, Dollar up

Local gold prices on January 17 morning eased to VND35.57million/tael, down VND50,000-VND60,000 from Friday close while global gold prices rebounded from one-week low. Meanwhile, dollar prices rebounded to VND21,080 in the free market.

At 2:51 p.m., Sacombank-SBJ in Ho Chi Minh was listed at VND35.53million/tael and VND35.57million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND35.53million/tael and VND35.61million/tael for bid and ask, respectively.

SJC in Hanoi was listed at VND35.52million/tael and VND35.6million/tael for bid and ask, respectively. Meanwhile, SJC in HCMC was listed at VND35.52million/tael and VND35.6milllion/tael for bid and ask, respectively.

In Asian trade this morning, spot gold gained 0.3% to $1,365.29 an ounce by 0311 GMT, after touching a one-week low of $1,354.99 on Friday. U.S. gold futures lost 1.6% to $1,365.1 an ounce.

China’s central bank raised lenders’ required reserves on Friday for the fourth time in just over two months, stepping up the fight against inflation that it has vowed will be a top priority for the year.

Eyes are on a suite of data from Beijing due on Thursday, including December inflation and fourth-quarter economic growth, which might give clues on how much tightening would be needed in the next few months.

“We may see gold prices pressured by the upcoming China data, but just for a session or two. The more important factor is still the United States,” said Hou Xinqiang, an analyst at Jinrui Futures.

But economic conditions in the U.S. and Europe will be a more decisive factor behind gold prices, some analysts said. The U.S. economy still needs support from the Federal Reserve even as recent data point to firmer growth prospects, top officials at the Federal Reserve said.

“In the short term, gold is most likely rangebound, with the recent lows around $1,354 being a strong support level. Medium-to long-term, prices are still looking up,” said Jinrui’s Hou, adding that a breach below the support level might bring a directional change to the market.

In the global market, the greenback held steady, as the euro hovered below a one-month high on Monday, with market players saying clearer signs of progress on the euro zone’s safety net for sovereign debt were necessary for the currency to make significant gains.

In the local market, dollar prices were quoted at VND21,040 and VND21,080 for bid and ask, respectively, up VND40 from last close. Meanwhile, those at Vietcombank were capped at VND19,495 and VND19,500. – Stoxplus.com

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