Jan 5: Vietnam gold plunges to VND35.7Mln/tael on global commodity rout

Local gold prices on January 5 plunged to VND35.7million/tael, down VND500,000 from last close as world gold prices slid more than 2% last night, its biggest one-day loss since early November.

SJC in Hanoi was listed at VND35.6million/tael and VND35.77million/tael for bid and ask, respectively. Meanwhile, SJC in HCMC was listed at VND35.6million/tael and VND35.75milllion/tael for bid and ask, respectively.

Sacombank-SBJ in Ho Chi Minh was listed at VND35.66million/tael and VND35.79million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND35.76million/tael and VND35.82million/tael for bid and ask, respectively.

In Asian trade this morning, spot gold was last bid around $1,380 an ounce in post-settlement trade, sharply off Monday’s intra-day peak of $1,423.57 an ounce. U.S. gold futures for February gold futures settled down $44.10 at $1,378.80 an ounce.

Global purchasing managers’ indexes on Monday showed manufacturing growth quickened. A government report on Tuesday showed new orders received by U.S. factories unexpectedly rose in November, and orders excluding transportation recorded their largest gain in eight months.

“I think this is more of a healthy correction. The fear trade is backing off somewhat after gold has recently rallied on global economic anxiety,” said Mark Luschini, chief investment strategist of Janney Montgomery Scott, a financial services firm managing $50 billion client assets.

“Data in the last couple of days only continues to affirm the organic strengthening in the economy, and that’s not just only in the U.S. but in the euro zone as well,” he said.

Despite the decline, many analysts say gold remains a good long-term safe-haven investment amid persistent concerns over euro zone debt levels and the U.S. growth outlook. – Stoxplus.com

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