Vietnam gold rises, Dollar falls – Mar 2

Local gold prices on March 2 rose over VND200,000 a tael as global gold rose overnight but dollar fell on lower demand.

As of 17:00 Hanoi time, Sacombank-SBJ gold as listed at VND37.53 million/tael and VND37.61 million/tael for bid and ask, respectively, up VND200,000 from that of yesterday.

Bid and ask of Thang Long gold bullion, a product of Bao Tin Minh Chau were listed at VND37.63 million/tael and VND37.75 million/tael for bid and ask, respectively, down VND350,000 from the same time yesterday.

SJC in Hanoi was listed at VND37.6 million/tael and VND37.72 million/tael for bid and ask, respectively, up VND300,000. Meanwhile, SJC in HCMC was listed at VND37.6 million/tael and VND37.7 milllion/tael for bid and ask, respectively.

In Euro trade this afternoon, Spot gold hit an intra-day high of $1,434.45, just 20 cents below the record hit in the previous session. It had since eased to $1,429.39.

Key support level is seen at $1,420 to $1,425, while charts suggest a rally towards $1,450 may be on the cards in the near term, according to Reuters analyst Wang Tao.

The positive view on bullion was shared by the scrap market where sales have slowed, anticipating higher prices.

In local money market, dollars are quoted at VND21,500 –VND 21,650 for bids and ask respectively, down VND150. The dong has been steadily gained since Feb 24 after the Prime Minister said at an online meeting that Vietnam will require state-own firms to sell dollars to banks.

Analysts say that dollar demand is lower as Vietnam is mulling to ban bullion trading, besides higher dong interest rates and calls for SOE and banks to sell surplus dollars would boost dollar supply.

Vietnam is getting it tough in an effort to stabilize forex market and control inflation. – Stoxplus.com

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