Jan 19: Vietnam gold surges to VND35.7Mln/tael, Dollar down

Local gold prices on January 19 morning surged to VND35.7million/tael, up VND100,000 from yesterday close as global gold prices rose to settle above $1,368. Meanwhile, dollar prices fell for the second straight day to VND21,030 in the free market.

At 9:08 a.m., Sacombank-SBJ in Ho Chi Minh was listed at VND35.64million/tael and VND35.68million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND35.6million/tael and VND35.7million/tael for bid and ask, respectively.

SJC in Hanoi was listed at VND35.62million/tael and VND35.7million/tael for bid and ask, respectively. Meanwhile, SJC in HCMC was listed at VND35.62million/tael and VND35.68milllion/tael for bid and ask, respectively.

Local trading remained thin, forcing gold shops to keep a narrow bid-ask spread of below VND100,000. Local gold prices have ranged from VND35million/tael to VND36million/tael for a month, the state media reported.

In Asian trade this morning, gold rose to settle above $1,368 on Tuesday, drawing strength from the dollar’s decline against the euro as well as from Asian consumption and a degree of uncertainty over Europe’s debt crisis.

Spot gold was last bid around $1,367 an ounce. U.S. gold futures for February delivery settled up $7.70 to end at $1,368.20 an ounce.

Concern is moderating about the health of the euro zone and the U.S. economy so gold is attracting less in the way of safe-haven flows, while the current uptick in physical demand will likely fade once the Lunar New Year celebrations end.

“As far as gold is concerned, there’s not that much kick or drive out there,” said VTB Capital analyst Andrey Kruychenkov.

“The inverse correlation with the dollar and the correlation with the euro have broken down and gold is in a bit of limbo. On the downside there is physical support … the Indian and Chinese are buying on price pullbacks, however this physical support is going to die out.

Gold usually benefits from any decline in the dollar, but has not been able to do so to any great extent this month. The dollar index has fallen by nearly half a percentage since the start of the year, and yet the gold price has also declined.

The dollar extended losses against the euro after a measure of German business confidence hit its highest since July, outstripping expectations and assuaging some concern about the euro zone’s largest economy.

In the local market, dollar prices were quoted at VND20,980 and VND21,030 for bid and ask, respectively,down VND20 from last close. Meanwhile, those at Vietcombank were capped at VND19,495 and VND19,500 for bid and ask, respectively. – Stoxplus.com

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