March 3: Vietnam gold, Dollar rise on global impact

Local gold prices on March 3 rose over VND100,000 a tael as global gold set up record high yesterday in New York, dollar climbed VND100.

As of 16:00 Hanoi time, Sacombank-SBJ gold as listed at VND37.64 million/tael and VND37.72 million/tael for bid and ask, respectively, up VND110,000 from that of yesterday.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND37.62 million/tael and VND37.75 million/tael for bid and ask, respectively, almost unchanged from yesterday level.

SJC in Hanoi was listed at VND37.62 million/tael and VND37.75 million/tael for bid and ask, respectively, up between VND10,000-VND30,000. Meanwhile, SJC in HCMC was listed at VND37.62 million/tael and VND37.7 milllion/tael for bid and ask, respectively.

In Euro trade this afternoon, spot gold was flat after hitting record highs in two consecutive sessions, as investors awaited clues from today’s meeting on European Central Bank monetary policy.

Spot gold was little changed at $1,433.60 an ounce, after striking a record high of $1,440.10 in the previous session. U.S. gold futures edged down 0.2 percent at $1,434.20.

“Until the political turmoil in the Middle East is resolved, gold prices will remain supported,” said Ong Yi Ling, an analyst at Phillip Futures.

Technical analysis is in line with market expectation on further price rally. Spot gold may march towards $1,450 during the day, based on its wave pattern and a Fibonacci projection analysis, said Reuters market analyst Wang Tao.

Investors are watching an ECB policy meeting later on Thursday, where the central bank is expected to step up anti-inflation rhetoric and may phase out some of its crisis support measures.

However, most economists had expected rate hikes not to materialize until at least October.

“Should the ECB reinforces the expectations that it will raise interest rates sooner or later, it could take some wind off gold’s rally,” said Ong.

Gold’s appeal could diminish if central banks start raising interest rates, which would ease some inflationary concerns. Higher interest rates would raise increase the opportunity cost of holding gold.

In local money market, dollars are quoted at VND21,600 –VND 21,700 for bids and ask respectively, upVND100 from the same time yesterday.

This is the first gain of dollar since Feb 24 after the Prime Minister said at an online meeting that Vietnam will require state-own firms to sell dollars to banks.

Vietnam is getting it tough in an effort to stabilize forex market and control inflation – Stoxplus.com

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