Vietnam gold plunges to VND36.8Mln/tael, Dollar up to VND21,010

Local gold prices on January 5 plunged to VND35.8million/tael, down VND400,000 from last close as world gold prices slid more than 2% last night. Meanwhile, dollar prices edged up VND20-VND30 to VND21,010 in the free market.

Local gold prices on January 5 plunged to VND35.8million/tael, down VND400,000 from last close as world gold prices slid more than 2% last night, its biggest one-day loss since early November. Meanwhile, dollar prices edged up VND20-VND30 to VND21,010 in the free market.

SJC in Hanoi was listed at VND35.73million/tael and VND35.81million/tael for bid and ask, respectively. Meanwhile, SJC in HCMC was listed at VND35.73million/tael and VND35.79milllion/tael for bid and ask, respectively.

Sacombank-SBJ in Ho Chi Minh was listed at VND35.75million/tael and VND35.79million/tael for bid and ask, respectively.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND35.76million/tael and VND35.82million/tael for bid and ask, respectively.

In Asian trade this morning, spot gold gained 0.3% to $1,383.14 an ounce, after posting its biggest daily loss since Nov 12. U.S. gold futures rose by 0.3% to $1,383.1.

A new bearish target at $1,360 per ounce has been established for spot gold as the deep fall in the previous session only completed part of a big downtrend, according to Wang Tao, a Reuters market analyst.

An improved economic outlook following a bout of positive data from the United States and elsewhere in recent weeks helped boost risk appetite, which could lead some investors to sell gold and get into riskier assets such as equities.

The CBOE Volatility Index, or VIX, fell slightly to 17.38 on Tuesday, showing that risk appetite was not deterred by the broad sell-off in commodities.

The price dip, however, did not change the bullish outlook for the bullion on the longer term, analysts said.

“It’s a temporary setback,” said Yingxi Yu, an analyst at Barclays Capital.

“We do see some physical buying come in to support. At this stage, I don’t think we are into something more significant and sustained, and we still remain relatively positive on gold for this year.”

Federal Reserve officials in December felt the U.S. economic recovery was still weak enough to warrant monetary support despite growing signs of strength, Fed meeting minutes released on Tuesday showed.

In the local market, dollar prices were quoted at VND20,970 and VND21,010 for bid and ask, respectively in the free market after holding steady near the threshold of VND21,000 for a week. Meanwhile, those at Vietcombank were capped at VND19,490 and VND19,500 for bid and ask, respectively. – Stoxplus.com

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