Nov 15: Vietnam gold hovers at VND35Mln, Dollar flat

Vietnam gold prices on November 15 morning hovered at VND35million/tael, after the State Bank of Vietnam (SBV) gave gold import quota to local banks. Meanwhile, dollar prices stayed flat at VND21,100.

At 11 a.m., SBJ was listed at VND34.91million/tael and VND35.09million/tael for bid and ask, respectively.

Phu Quy SJC in Hanoi was listed at VND34.95million/tael and VND35.08million/tael for bid and ask, respectively.

Bid and ask of Thang Long bullion, a product of Bao Tin Minh Chau were listed at VND34.95million/tael and VND35.09million/tael for bid and ask, respectively.

Vietnam has abolished the import duty on gold in another effort to cool domestic prices of the metal after it has granted gold import quotas last week, a state-run newspaper reported. However, local trading remained sluggish as investors stay on the sidelines.

In Asian trade this morning, spot gold was little changed at $1,366.95 an ounce by 0331 GMT, after falling 3% on Friday as talks of an imminent interest rates hike in China triggered a broad sell-off across the financial markets.

Spot gold is expected to fall more to $1,341 per ounce based on a bearish triangle pattern on the hourly chart, said Wang Tao, a Reuters market analyst.

“We may see some consolidation, but the overall trend is still looking up, as the Federal Reserve’s second round of quantitative easing sets the tone for ample liquidity for the first half of 2011,” said Li Ning, an analyst at Shanghai CIFCO Futures.

“We have seen a quite volatile market in the past week, as investors were nervous after prices hit record highs. We could see gold pull back to $1,330 to $1,350 level.”

The prospects of further tightening in China, together with euro zone debt woes, kept sentiment in the financial markets fragile.

In the local market, dollar prices at the gold shops were quoted at VND20,900 and VND21,100 for bid and ask, respectively. Meanwhile, those at Vietcombank are capped at VND19,490 and VND19,500 for bid and ask, respectively. – Stoxplus.com

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