Vietnam gold near VND28.2Mil, dollar eases

Local gold prices headed up to near VND28.20 million a tael on August 13, rising up to VND200,000 a teal as world gold prices soared 1.3% last night in New York, dollar prices eased to VND19,280.

On Friday, SJC’s bullion bid and ask were listed at VND 28.14 million and VND28.20 million/tael, up nearly VND200,000 a tael from yesterday morning. A tael is equal to 1.2 ounce.

Bid and ask of Thang Long bullion gold, a product of Bao Tin Minh Chau gold company, were at VND28.11 million and VND28.18 million a tael at 10 am, up VND150,000 from yesterday morning.

Sacombank-SBJ bullion gold’s bid and ask opened at VND28.13 million and VND28.17 million, up VND120,000 – VND130,000 a tael from yesterday afternoon and rose to VND28.15 – VND28.18 million a tael as of 10 a.m.

The local gold trading was still sluggish though the buying interest livened up a bit this morning.

In Asia trade this morning, gold touched a four-week high extending gains from the previous day as investors bought the precious metal and shied away from riskier assets on concern about the health of the global economy.

Spot gold stood at $1215.10 an ounce by 0446 GMT, up $3.90 on the day, after earlier touching $1215.85 an ounce, its highest since July 15.

“We may see gold edging further up on follow-on strength after yesterday’s gains,” said Ong Yi Ling, investment analyst at Phillip Futures in Singapore.

“If U.S. retail sales comes in weaker than expected then people will be getting worried about the U.S. economy.”

The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust said on Friday its holdings rose for the second consecutive day. It held 1,286.699 tons by Aug. 12, up from 1,285.787 tons on Aug. 11.

Investor interest and the higher price had depressed physical demand, a Hong Kong-based trader said.

“With the SPDR increasing and gold attractive as a safe haven, physical demand has diminished,” he said. Sellers would be holding in the hope of further gains, he added.

Buyers came into the market when gold hit a near three-month low in July but in the rally since, demand has steadily fallen, he said.

Top gold consumer India has stayed on the sidelines as the price has risen, although buying was expected to pick up during the festive season that begins on Aug. 24 and extends into November.

Gold typically gains when the dollar falls, but on Thursday both rose. That could be a sign that investors are looking at gold as an inflation hedge amid a run up in the prices of some other commodities, said Jonathan Barratt, managing director of Commodity Broking Services in Sydney.

“Given what is happening to foods and cereals, they are perhaps perceiving there could be an inflationary spike,” Barratt said.

In the local forex market, dollar price eased at gold shops but remained stable at Vietcombank. Dollar prices at gold shops down VND20 from yesterday close, yet stay high at VND19,260 and VND19,280 for bid and ask, respectively.

Meanwhile, Vietcombank’s dollar bid and ask were listed unchanged at VND 19,098 and VND 19,100. The State Bank of Vietnam sets inter-bank exchange rate stable at VND18,544 and said the forex market is still stable.

In global forex market, USD strengthened against major currencies including Japanese yen. – Stoxplus

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