Oct 29: Vietnam gold resumes to VND33Mln, Dollar up to VND20,350

Local gold prices on October 29 revisited the threshold of VND33million/tael while dollar prices hit all-time high of VND20,350 in the free market.

Local gold prices on October 29 revisited the threshold of VND33million/tael while dollar prices hit all-time high of VND20,350 in the free market.

At 9:15 a.m., Thang Long bullion gold, a product of Bao Tin Minh Chau was listed at VND32.9million/tael and VND33million/tael.

Samcombank-SBJ bullion in Ho Chi Minh at 10:45 a.m. was listed at VND32.98million/tael and VND33.01million/tael for bid and ask, respectively.

Ho Chi Minh SJC was opened at VND32.95million and VND33million for bid and ask, respectively, up VND150,000 from last close. At 8:35 a.m, the gold trader reduced SJC gold to VND32.93million and VND32.98million/tael for bid and ask, respectively.

Local physical gold trading remained sluggish as local investors are staying on the sidelines.

In Asia trade this morning, spot gold edged down 0.3 % to $1,340.02 an ounce by 0319 GMT, after rallying about 1.5 % in the previous session, headed for a one % weekly gain. U.S. gold futures lost 0.2 % to $1,340.4.

Gold prices are likely to trade within the current range before the Fed meeting, as sentiment is far away from the euphoria seen a while ago and traders have become rather cautious,” said Hou Xinqiang, an analyst at Jinrui Futures in China.

The State Bank of Vietnam (SBV) on late October 28 issued Circular 22/TT-NHNN replacing Decision 432/2000/QD-NHNN prevent local credit institutions from lending for bullion processing and trading purposes; depositing and lending the dong based on gold standard; and converting gold deposits into the dong.

Meanwhile, local lenders are entitled to raise gold deposits through issuing banknotes and lend gold for jewelry production and trading purposes.

The SBV’s restriction on gold deposit and lending activities aims to curb the local dollarization, speculation and illegal gold import, which in turn will help stabilize the foreign exchange market.

In the local forex market, dollar bid and ask prices at gold shops advanced to the fresh lifetime high of VND20,300 and VND20,350, up VND100,000 from last close. Vietcombank’s dollar bid and ask were unchanged at VND19,490 and VND19,500, respectively.

In the global forex market, the dollar was steady against a basket of currencies, but fell towards a 15-year low as the yen rose broadly and pushed down the euro and higher-yielders. – Stoxplus.com

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