Oct 7: Vietnam gold regains VND33Mln threshold, Dollars hold

Local gold prices came back to its lifetime record high of VND33million/tael after an ease back to VND32.7million/tael this morning, while dollar prices held at the official and unofficial market.

Local gold prices came back to its lifetime record high of VND33million/tael after an ease back to VND32.7million/tael this morning, while dollar prices held at the official and unofficial market.

Sacombank-SBJ bullion in Ho Chi Minh at 10:55 a.m. this morning was listed at VND32.91million/tael and VND33million/tael for bid and ask, respectively.

Ho Chi Minh’s SJC bullion at 11 a.m was listed at VND32.85million/tael-VND32.93million/tael for bid and ask, respectively, up VND300,000 from the opening prices. Meanwhile, Hanoi’s SJC was listed at VND32.85million/tael and VND32.95million/tael for bid and ask, respectively.

Earlier at 09 a.m, SJC bullion was listed at VND32.72million/tael and VND32.78million/tael for bid and ask, respectively, down VND300,000 from its peak yesterday.

Bid and ask of Thang Long bullion gold, a product of Bao Tin Minh Chau gold company were listed at VND32.83million/tael and VND32.98million/tael, respectively.

Despite the ascent of the gold price to fresh all-time highs, bullish enthusiasm remains fairly tepid.

The State Bank of Vietnam (SBV), the country’s central bank said on Thursday it would mull granting permits for gold imports if prices in the domestic market rose “unreasonably high.”

In Asia trade this morning, spot gold hit record highs in three consecutive sessions, with the latest at $1,355.55. It eased to $1,353.90 by 0346 GMT.

U.S. gold futures for December delivery hit a fresh record high at $1,356 an ounce, before easing slightly to $1,354.9.

Holdings in the SPDR Gold Trust remained unchanged for two straight days.

“People are going to focus on the fact that Asian physical market will be tight. Last time Vietnam opened door to gold imports, gold went up $20. In percentage term, it could translate into $30 today,” said a Singapore-based trader.

“By the year-end, most likely $1,400 will not be a difficult target,” said Dick Poon, manager of precious metals at Heraeus in Hong Kong.

“But there is resistance at $1,350 level, and there may be consolidation coming up which will pull gold down $20 to $30. But I’m still bullish.”

Strong momentum is seen continuing for gold’s bull run, and a new target at $1,365 for the next 24 hours is established, as the wave ’5″ progresses towards the upper channel line resistance, according to Reuters market analyst Wang Tao.

In the local forex market, dollar prices held at the official and unofficial market. Dollar asks at gold shops stay at the peak of VND19,710. Meanwhile, Vietcombank’s dollar bid and ask were unchanged at VND19,475 and VND19,500.

In global forex market, the dollar was mired near a 15-year low versus the Japanese yen and an eight-month low against the euro on Thursday on the spectre of more money-printing by the U.S. Federal Reserve as early as next month. – Stoxplus.com

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