July 14: Vietnam gold rockets to fresh all-time high of vnd39.08mln

Local gold on Thursday morning surged VND500,000 to hit a new all-time high of VND39.08millio/tael as global gold extended its winning streak to a ninth session, marking a record high of $1,589.56 an ounce.

Sacombank-SBJ gold as listed at VND38.98million/tael and VND39.08million/tael for bid and ask, respectively, representing corresponding increases of VND520,000 and VND480,000.

In Hanoi, bid and ask of Thang Long gold bullion, a product of Bao Tn Minh Chau were listed at VND38.9million/tael and VND39.02million/tael, soaring by VND450,000 and VND440,000 for bid and ask, respectively.

Meanwhile, SJC in HCMC was listed at VND38.98million/tael and VND39.08milllion/tael for bid and ask, respectively.

Local trading in Hanoi was more active than in Ho Chi Minh city as investors rushed to take profit on soaring prices.

Soly on Wednesday morning, over 4,000 taels were sold to DOJI gold and gem group, said Nguyen Minh Phu, DOJI’s CEO. Meanwhile, SJC Hanoi reported that it purchased over 1,000 taels from the public yesterday morning.

In New York trade last night, spot gold extended its winning streak to a ninth session on Thursday, hitting a record high of $1,589.56 an ounce, buoyed by the continuing European debt crisis and a drop in the U.S. dollar.

Fears that the euro zone crisis is spreading to Italy, the region’s third-largest economy, and uncertainties over frantic talks to raise the U.S. debt limit underpinned precious metals.

“We have fear and contagion risks in Europe, and we are getting a rally of risk assets on the back of Bernanke alluding to the Fed trying to stimulate the economy, what people refer to as QE3,” said Jeffrey Sherman, commodities portfolio manager at DoubleLine Capital, with more than $12 billion in assets.

It has risen around 12% so far this year, versus the S&P stock gauge’s 5.5% gain, and a loss of 5% for the dollar index. The metal has also more than doubled in price in the last four years.

Some market watchers expect gold to extend its rally to above $1,600 an ounce later this year, while bullish option bets point to bullion as high as $1,700 an ounce by December. – Stoxplus.com

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