Vietnam gold near VND28Mln, Dollars soars to VND19,290

Local gold price slumps to VND28.05 million a tael on August 12, down VND 80,000- VND 100,000 from yesterday morning while dollar price rose to VND 19,208.

Local gold price slumps to VND28.05 million a tael on August 12, down VND 80,000- VND 100,000 from yesterday morning while dollar price rose to VND 19,208.

On Thursday, SJC’s bullion gold’s bid and ask were closed at VND 27.99 million and VND28.03 million/tael at 9h30 am. SBJ bullion’s bid and ask were listed at VND27.99 million and VND28.03 million/tael. 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 listed at VND27.96 million and VND28.03 million a tael in today morning.

The trading was sluggish as the buying interest and supply pressure were both weak.

In Asia trade this morning, spot gold gained $2.15 still hovering below the closely watched 50-day moving average. U.S. gold futures for December delivery also rose.

“I would expect the equity markets continue to sell off. We may see more gold selling as we’ve often seen before to cover those margin calls,” said Darren Heathcote, head of trading at Investec Australia in Sydney.

“But then one might question whether or not, given the uncertainty, we might get more safe haven buying. It’s being pulled both ways, in terms of selling for margin calls, but on the other hand safe-haven investors will be attracted to gold.”

The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings rose from August 5. The holdings hit a record at 1,320.436 tons on June 29.

In the local forex market, dollar prices rose up to VND30 at gold shops but stabilized at Vietcombank. Dollar prices at gold shops rose to VND19,260 and VND19,290 for bid and ask, respectively, up VND 20-30 from yesterday morning while Vietcombank’s dollar bid and ask were listed unchanged at VND 19,098 and VND 19,100.

In global forex market, the dollar continued to firm after scoring its biggest daily gain for nearly two years the previous day as concerns about the U.S. and global economies triggered a wave of unwinding in short dollar positions.

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