May 13: Vietnam gold rises, interbank dollar at 6 week low

Local gold on May 13 was traded at VND37.47 million a tael as at 9:10 Hanoi time as global gold edged up on dollar weakness, the inter-bank dollar reference rate fell further by VND5 to VND20,688, lowest level since March 30.

This morning gold prices were VND10,000 lower than the same time yesterday but rose VND100,000 from yesterday close.

As of 9:10 Hanoi time, Sacombank-SBJ gold as listed at VND37.390 million/tael and VND37.47 million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND37.35 million/tael and VND37.47million/tael for bid and ask, respectively.

SJC Hanoi was listed at VND37.37 million/tael and VND37.46 million/tael for bid and ask, respectively.

Local gold trading is reported sluggish after the local banks stopped gold lending activities since May 1 and amid tension of dong liquidity, high dong-denominated interest rates.

However, analysts have not seen clear switch from dollar or gold into the dong as Vietnam’s April deposits at banks fell.

In New York trade last night, spot gold was last bid around $1,501 an ounce. U.S. gold futures for June delivery settled up $5.40 at $1,506.80 an ounce, after trading in a range from $1,477.60 to $1,509.70.

In local money market, dollar midpoint rate fell by VND5 to VND20,688 a dollar sending the exchange cap down to VND20,895/$ on +/- 1% trading band basis. Banks continued to apply negative trading band, offering dollar at VND48-VND68 a dollar lower than midpoint rate.

Vietcombank, Vietnam’s biggest dollar trader, quoted dollar prices at VND 20,540 – 20,620, respectively for bids and ask, down VND10 from yesterday.

Sacombank quoted dollar prices at VND 20,510 – VND20,630, respectively for bids and ask, unchanged from yesterday.

Eximbank quoted dollar prices at VND20,520 for bid and VND 20,620 for offer, unchanged for bid but down VND20 for offer.
- Stoxplus.com

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