Vietnam gold falls VND100,000/tael, Dollars edge up

Local gold prices sled VND100,000 to VND28.60 million/tael and VND28.65 million/tael for bid and ask, while dollar prices edged up market as world gold prices slipped to its lowest level in nearly a week on weaker equities.

On August 24, local gold prices sled VND100,000 from last close to VND28.60 million/tael and VND28.65 million/tael for bid and ask, while dollar prices edged up at both official and unofficial market as world gold prices slipped to its lowest level in nearly a week on weaker equities .

SJC bullion in Hanoi was listed at VND28.59/tael and VND28.65 million for bid and ask this morning. Sai Gon SJC’s bullion’s bid and ask were listed at VND 28.60 million and VND28.66million/tael.

Sacombank-SBJ bullion’s bid and ask at 9:30 a.m were listed at VND28.61 million and VND28.65million/tael. A tael is equal to 1.2 ounce.

Thang Long bullion gold, a product of Bao Tin Minh Chau was listed at VND28.57 million and VND28.63 million/tael for bid and ask at 10:15 a.m.

Local gold trading on Tuesday morning was lackluster as traders see the prices still low to take profit but high to buy. Traders said today local gold price fell also because the stock market tumbled and some had to sell gold to meet the demand call, other sold gold to bottom fish the stock market.

In Asia trade, spot gold fell $2.90 an ounce to $1,220.50 after hitting a low of $1,219.30, its weakest since August 18. It jumped to a 1-½ month high at $1,237.15 last week after a trail of poor U.S. data knocked confidence in the economic recovery.

U.S. gold futures for December delivery dropped $6.1 to $1,222.4 an ounce.

“I guess the market sentiment is not really too bad. The Indian festival is coming in and the funds will finish their holidays,” said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

“We see some light buying when the price slips towards $1,220,” said Leung, adding that uncertainty in the global economy would also underpin sentiment in gold.

Demand in India, the world’s largest gold consumer, rises during the festive season, which begins with Raksha Bandhan next week and lasts through November with Dhanteras — the single-biggest gold buying day.

Investors await the release of U.S. existing home sales, which are expected to show a drop of around 12% in July, underlining the weakness of the housing market. Lackluster U.S. data could boost gold’s safe-haven appeal in times of uncertainty.

In the local forex market, dollar prices rose in both official and unofficial markets.

Dollar prices in free market were mostly listed at VND19,500 and VND19,520 for bid and ask, respectively, up VND20 to VND30 from last close.

Dollar’s bid and ask at local banks rose VND10 to the cap after the central bank’s move last week. Dollar prices were listed at VND19,475 and VND19,500 for bid and ask at Vietcombank.

In global forex market , US dollar trading closed the day strong , rising 0.4 % versus the euro as the single currency was hurt by concerns over the euro zone economy and prospects of loose monetary policy until year-end. – Stoxplus.com

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