Mar 25: Vietnam gold undercuts VND37Mln threshold, Dong gains

Local gold on March 25 undercut the threshold of VND37million to VND36.97million/tael while global gold inched up on worries about euro zone’s debt crisis and Middle East turmoil. Meanwhile, the dong gained VND5 in the official market.

As of 2:27 p.m Hanoi time, Sacombank-SBJ gold as listed at VND36.9million/tael and VND37million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND36.86million/tael and VND36.98million/tael for bid and ask, respectively.

SJC in Hanoi was listed at VND36.9million/tael and VND36.99million/tael for bid and ask, respectively, meanwhile, SJC in HCMC was listed at VND36.9million/tael and VND36.97milllion/tael for bid and ask, respectively.

In Asian trade this morning, spot gold inched up 0.3% to $1,433.65 an ounce, on course for a weekly rise of nearly 1%. U.S. gold was little changed at $1,434.

Standard & Poor’s downgraded Portugal’s credit ratings, after its government failed to get austerity measures past parliament, stoking fears that the country might need a bailout after all.

Intensified euro zone debt concerns helped push spot gold to a record peak of $1,447.40 an ounce on Thursday, and silver to a 31-year high of $38.13.

“The market will remain choppy, as the trend is not very clear even with support from the Libyan crisis and other factors,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

Technical analysis suggested that gold has entered a consolidation phase, likely within a range of $1,422 and $1,438, said Reuters market analyst Wang Tao.

“Speculation on further monetary policy easing in the U.S., central banks’ purchase, and recovering demand from the jewelry sector will help buoy sentiment in the gold market,” said a Hong Kong-based dealer, but added that speculators are wary of holding long positions at high price levels.

In local official forex market, the dong gained VDN5 as the State Bank of Vietnam strengthened reference rate to VND20,683 per dollar compared to VND20,688 per dollar, according to the central bank’s data. – Stoxplus.com

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