Oct 14: Vietnam gold hits fresh all-time high of VND33.3Mln, Dollar flat

Local gold prices on Thursday morning had the strongest rally ever, soaring VND610,000/tael to set a new lifetime high at VND33.3million/tael as global gold prices set a fresh all-time high of $1,376.95 an ounce.

Local gold prices on Thursday morning had the strongest rally ever, soaring VND610,000/tael to set a new lifetime high at VND33.3million/tael as global gold prices set a fresh all-time high of $1,376.95 an ounce. Local dollar prices stayed flat at both official and unofficial market despite the dollar fell to its lowest in nine months against a basket of hard currencies in the global market.

Thang Long bullion, a product of Bao Tin Minh Chau was listed at VND33.10 million/tael and VND33.35million/tael for bid and ask, respectively, up VND610,000 from last close.

Sacombank-SBJ bid and ask were listed at VND33.14million/tael and VND33.34million/tael, repectively, up VND610,000 from yesterday.

Local trading remained lackluster this morning as investors stayed on sidelines on gold price volatility.

In New York trade last night, spot gold hit a peak of $1,374.15 an ounce on dollar weakness and was last bid around $1,371, against $1,349.60 late on Tuesday.

In Asia trade this morning, Spot gold rose to a fresh all-time high of $1,376.95 an ounce, which marked the 16th record high in five weeks as the dollar fell to its lowest in nine months against a basket of currencies. U.S. gold futures for December delivery set a new record high at $1,377.9 an ounce.

Spot gold is expected to rally towards $1,404 per ounce as it has climbed above a consolidation range bet

The dollar remained a main short-term driver of gold, with the currency coming under selling pressure as market expectations grew that further Fed easing was imminent.

“Because we are in a world of quantitative easing in the developed economies, and as QE is almost synonymous with competitive devaluation … gold and the precious metals (are) taking on the function of an alternative currency,” said Ashok Shah, chief investment officer at London and Capital.

Bullish technicals are also driving investment demand to the long side of the gold market.

Technically, gold bulls have the solid overall near-term technical advantage and gained still more power Wednesday. Prices are in a 2.5-month-old uptrend on the daily bar chart. There are no early technical clues to suggest a market top is close at hand, Jim Wyckoff an analyst with Kitco News said.

The correlation between gold and the U.S. dollar was near a negative 0.6, its most pronounced in six months on a 25-day rolling basis, Reuters data showed.

In the local forex market, dollar prices stayed flat at both official and unofficial market.

Dollar prices at the gold shops this morning were quoted at VND19,800-VND19,840 for bid and ask, respectively. Vietcombank’s dollar bid and ask were unchanged at VND19,475 and VND19,500. – Stoxplus.com

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