Vietnam gold, Dollar ease eyeing SBV’s move

Local gold prices on October 26 edged down to VND32.9million/tael on concerns over the State Bank of Vietnam (SBV)’s restriction in local gold trading activities. Meanwhile, dollar prices edged down to VND20,120 – VND20,170 in the free market.

Local gold prices on October 26 edged down to VND32.9million/tael on concerns over the State Bank of Vietnam (SBV)’s restriction in local gold trading activities. Meanwhile, dollar prices edged down to VND20,120 – VND20,170 in the free market.

At 9:30 a.m., Ho Chi Minh’s SJC bullion was listed at VND32.87million/tael and VND32.92million/tael for bid and ask, respectively, down 70,000 from last close.

Samcombank-SBJ bullion in Ho Chi Minh at the same time was listed at VND32.89million/tael and VND32.92million/tael for bid and ask, respectively.

Bid and ask of Phu Quy’s SJC in Hanoi were listed at VND32.88million/tael and VND32.95million/tael, respectively.

Bid and ask of Thang Long bullion gold, a product of Bao Tin Minh Chau were listed at VND32.86million/tael and VND32.95million/tael, respectively.

The official circular on gold market supervision is expected to be issued this week by the State Bank of Vietnam (SBV), aiming to squeeze local gold investing and trading activities, the local newswire VnExpress reported October 25.

Local selling pressures yesterday heated up ahead of the central bank’s move while buying interest remained tepid, making local gold prices were legged behind the rising momentum of global gold prices.

In Asia trade this morning, spot gold was up $1.6 at $1,339.57 an ounce by 0336 GMT, extending gains from the previous session and moving in a narrow range of $5. U.S. gold futures remained almost unchanged at $1,340.

“People are waiting for next week’s Fed meeting to see how much money they are going to pump into the market,” said Ronald Leung, a physical dealer at Lee Cheong Gold Dealers.

“There is buying interest at the lower end, below $1,325. At the current price level, there is not much physical buying. Why would they buy now? They’ve seen lower levels.”

“The market is trapped between $1,315 and $1,350,” said a Singapore-based dealer. “It’s neither here nor there, and people are not sure whether they should short gold or buy.”

In the local forex market, dollar bid and ask prices at gold shops edged down to VND20,120 and VND20,170, representing responsive decreases of VND40 and VND10 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 held just a yen above its 1995 record low against the Japanese currency on Tuesday, prompting Japanese policy-makers to remind the market that Tokyo might intervene if pushed to stop its currency from rising.

The dollar barely moved against a basket of currencies as the euro failed to sustain gains the previous day back towards a recent eight-month high, highlighting the fact that the greenback is finding bouts of support. – Stoxplus.com

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