Jan 26: Vietnam gold edged up to VND35.18Mln/tael, Dollar down

Local gold prices on January 26 edged up to VND35.18milllion/tael as global gold edged up to $1,333.29 an ounce, off the three-month low at $1,322.70. Dollar prices undercut the VND21,000 threshold to VND20,980 in the free market.

At 1: 49 p.m., Sacombank-SBJ in Ho Chi Minh was listed at VND35.09million/tael and VND35.15million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND35.09million/tael and VND35.18million/tael for bid and ask, respectively.

SJC in Hanoi was listed at VND35.07million/tael and VND35.16million/tael for bid and ask, respectively. Meanwhile, SJC in HCMC was listed at VND35.07million/tael and VND35.14milllion/tael for bid and ask, respectively.

In Asian trade this morning, spot gold prices held steady on Wednesday, off a three-month low hit in the previous session, supported by strong physical demand in Asia, as investors await the U.S. Federal Reserve’s rate decision and more economic data for direction.

Spot gold was little changed at $1,333.29 an ounce, off the three-month low at $1,322.70 hit on Tuesday. U.S. gold futures were also steady at $1,332.8.

Holdings in the SPDR Gold Trust suffered its largest one-day loss, down 31.262 metric tons to an eight-month low of 1,229.581 metric tons, as safe-haven demand from investors diminishes at wake of improved economic data.

U.S. consumer confidence rose in January to its highest level in eight months, underscoring the brightening economic outlook, although declining housing prices still cast a cloud on the recovery.

“People like to liquidate their gold investment to move to markets other than metals,” said a Hong Kong-based dealer, adding that even though robust physical demand remained supportive, the price trend looked bearish.

“Prices will likely test $1,320 again, and upside pressure is still a bit heavy.”

The supply tightness in the physical market is expected to ease as the Lunar New Year holiday arrives, traders said.

But gold prices are expected to average $1,450 an ounce in 2011, building on stellar gains from last year, boosted by low interest rates, dollar weakness and lingering worry over growth in major economies, a Reuters poll showed.

Spot gold will rebound slightly to $1,342 per ounce, based on its wave pattern and a Fibonacci projection, said Reuters market analyst Wang Tao.

In the global market, the dollar held near a 10-week low against a basket of currencies on Wednesday, with the market looking for confirmation from the Federal Reserve later in the day that its focus remains on supporting growth.

In the local market, dollar prices were quoted at VND20,940 and VND20,980 for bid and ask, down VND30-40 in the free market. 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