Oct 25: Vietnam gold heads to VND33Mln threshold, Dollar up

Local gold prices on October 25 surged VND110,000-VND140,000 to near the threshold of VND33million/tael as the world gold price rose one percent, while dollar prices extended its rising momentum to VND20,180 in the free market.

Local gold prices on October 25 surged VND110,000-VND140,000 to near the threshold of VND33million/tael as the world gold price rose one percent, while dollar prices extended its rising momentum to VND20,180 in the free market.

On Monday, bid and ask of Phu Quy’s SJC in Hanoi were listed at VND32.89million/tael and VND32.98million/tael, respectively.

Ho Chi Minh’s SJC bullion was listed at VND32.89million/tael and VND32.96million/tael for bid and ask, respectively.

At 9:30 a.m., Samcombank-SBJ bullion in Ho Chi Minh was listed at VND32.91million/tael and VND32.97million/tael for bid and ask, respectively.

Local gold trading was lackluster this morning as investors stayed on the sidelines on price volatility. Vietnam gold prices are VND400,000/tael higher than those in the global market (fees included).

In Asia trade this morning, spot gold rose nearly one percent to $1,338.85 an ounce by 0320 GMT, off the 2-½ week low at $1,315.09 hit last Friday and about to cross above the 20-day moving average at $1,339.27.

U.S. gold futures for December delivery rose more than one percent to $1,339.4 an ounce.

“This morning we saw good buying interest in the market. I expect gold to go back to its nine-day moving average at about $1,350 level. In case it stays above that level, we’ll expect to see another round of rally.”

The ongoing concerns on the recovery of the global economy and inflation due to lax monetary policies have made gold a popular investment, pushing the precious metal up 22% so far this year, outpacing copper’s 15% gain.

“Going forward, the dollar will remain under pressure as investors turn to focus on quantitative easing. The fall in the dollar has picked up, supporting gold,” said Ong Yi Ling, an analyst at Phillip Futures.

In the global forex market, the dollar fell broadly on Monday as investors interpreted a Group of 20 agreement to shun competitive currency devaluations as a green light to resume dollar selling.

In the local forex market, dollar bid and ask prices at gold shops advanced to VND20,160 and VND20,180, up VND40 from Saturday morning. Vietcombank’s dollar bid and ask were unchanged at VND19,490 and VND19,500, respectively. – Stoxplus.com

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