Oct 8: Vietnam gold volatile, Dollars up

Local gold prices on October 8 were very volatile, up and down several times after the State Bank of Vietnam yesterday licensed some local gold-trading firms to import gold, while dollar prices soared to VND19,900 per dollar in the free market.

Samcombank-SBJ bullion in Ho Chi Minh at 8:20 a.m sled VND1.2million/tael from the peak of yesterday, listed at VND31.81million/tael and VND32.24million/tael. SBJ’s bid and ask spread was widened to the record of VND430,000/tael.

However, at 10:15 a.m, SBJ gold was boosted up VND200,000/tael to VND32.44million/tael and VND32.59million/tael, respectively. The gold trader said SBJ bullion was adjusted at least 5 times this morning.

Ho Chi Minh’s SJC bullion on Friday was opened at VND32.1million/tael and VND32.2million/tael for bid and ask, respectively, down VND1million/tael from the all-time high.

However, SJC bullion prices were adjusted up and down many times thereafter, and listed at VND32.38million/tael and VND32.48million/tael for bid and ask, respectively, up VND300,000 from opening prices.

Bid and ask of Thang Long bullion gold, a product of Bao Tin Minh Chau gold company were listed at VND32.35million/tael and VND32.65 million/tael, respectively.

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

Earlier on late October 7, the country’s central bank officially gave ten local gold-trading firms a gold import quota of 200kg-300kg each, pulling local gold prices yesterday down VND300,000/tael to VND32.8million/tael.

Nguyen Van Giau, the SBV’s Governor said this move will help to ease the gold market sentiment and ease local gold prices.

In Asia trade this morning, spot gold was little changed at $1,333.20 an ounce, off the $1,364.6 peak hit on Thursday. Gold is set for a 1.2% rise from a week earlier, the fourth consecutive week of gains.

Gold may trade in a $1,325 and $1,340 range for one session before dropping towards $1,315 an ounce, as a sharp fall is generally followed by a mild consolidation, said Wang Tao, a Reuters market analyst.

Adding to the bullish sentiment, AngloGold Ashanti, the world’s third-largest gold miner, said it has eliminated its hedge book, and is bullish on gold prices for next year.

The fourth quarter traditionally marks strong demand for gold, in jewellery and investment, said Wu Jun, an analyst at Shanghai CIFCO Futures. Investment demand may rise faster, as investors seek new channels after Beijing tries to squeeze speculation out of the red hot property market.

In the local forex market, dollar prices surged at unofficial market while stay flat at official market.

Dollar prices at gold shops were quoted at VND19,850 and VND19,900 for bid and ask, respectively, up VND20-VND30 to a dollar from last close in the wake of the SBV’s move. Meanwhile, Vietcombank’s dollar bid and ask were unchanged at VND19,475 and VND19,500.

In global forex market, the dollar came under pressure again on Friday, starting to lose gains its made from a bout of profit-taking to adjust positions ahead of U.S. jobs data and Group of Seven (G7) and IMF meetings later in the week.

The dollar index against a basket of six currencies slipped 0.2% to 77.26, edging towards an 8 1/2-month low of 76.906 hit on Thursday. – Stoxplus.com

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