May 17: Vietnam gold, Dollar have volatile day on global impacts

Local gold and dollar on May 17 were very volatile, gold fell in early morning before soaring in the midmorning session and then eased back in the afternoon, trading was still sluggish, dollar price briefly hit ceiling in the morning.

As of 9:00 Hanoi time, Sacombank-SBJ gold fell by VND40,000 to VND37.290 million/tael and VND37.36 million/tael for bid and ask, respectively.

SJC Hanoi was listed at VND37.28 million/tael and VND37.38 million/tael for bid and ask, respectively, down VND30,000.

However, one hour later, gold turned tail, gaining VND40,000 a tael. As of 10:00 Hanoi time, gold offer prices were quoted at VND37.45-VND37.46.

Gold has another sharp adjustment in the afternoon session. As of 15:00 Hanoi time, Sacombank-SBJ gold eased to VND37.310 million/tael and VND37.42 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 VND37.31 million/tael and VND37.42million/tael for bid and ask, respectively.

SJC Hanoi was listed at VND37.36 million/tael and VND37.45 million/tael for bid and ask, respectively.

The move is attributed to sharp changes in dollar prices. In the morning session, Vietcombank, Vietnam’s biggest dollar trader, and BIDV quoted dollar offer prices at VND20,880 ceiling first time since April despite the fact that the interbank dollar midpoint, set by the Central Bank, eased further by VND5 to VND20,673, the lowest level since March 22.

However, both two dollar traders quoted dollar offer price down VND80 to VND20,800 in the afternoon session. Other dollar traders including ACB, Eximbank also adjusted down dollar price quote in the afternoon.

Global Gold and Dollar Today

Gold held steady on Tuesday, spot gold edged up 0.2 percent to $1,492.29 an ounce. U.S. gold futures eased 0.01% to $1492.90 while investors scrutinize the currency market for direction.

The euro bounced from a seven-week low hit on Monday after euro zone finance ministers approved a three-year, 78-billion euro emergency loan program for Portugal, easing worries over the region’s sovereign debt crisis.

“People don’t have a clear idea where things will go from here, and are following the euro closely,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

Physical buying in Asia helped offset the slightly stronger dollar, which edged up 0.3 percent against a basket of currencies. EUR/USD traded at 1.4142, down 0.13% as of 4:18 New York Time.

Billionaire financier George Soros dumped almost his entire $800 million stake in bullion in the first quarter, while John Paulson kept his enormous SPDR Gold Trust position largely unchanged.

The news was not expected to trigger major moves in prices, as it was leaked in media reports earlier in the month, traders said.

“In the next four to eight weeks, all metals and other commodities should have further room to test lower, along with equities.” , Reuters quoted a trader in Hong Kong. The rebounding trend in the dollar is likely to continue, putting pressure on commodities, he added.

The recent ETF redemptions and exit of large-scale investors such as Soros could provide overhead resistance in the short-term, prompting some investors to view rallies as profit taking opportunities and could result in choppy range trade in the coming sessions, James Moore, a research analyst with fastmarkets.com said in an article today.

The analyst also expects an orderly decline as the metal benefits from strong physical and investment – Stoxplus.com

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