Vietnam gold prices hovered at VND43.62 million a tael on Wednesday morning after sharply falling at yesterday close to VND43.50million a tael. The world gold prices plunged yesterday in New York but steady this morning in Asia.
SJC Hanoi quoted at VND43.40 million/tael for bid and VND43.62 million/tael for ask, respectively as of 9:22 am, Hanoi time.
Sacombank-SBJ gold prices were listed at VND43.43-VND43.63 million/tael for bid and ask, respectively.
Rong Thang Long gold, a product of Bao Tin Minh Chau company was trading at VND42.40 million/tael and VND42.70 million/tael for bid and ask, respectively.
Vietnam gold prices have fallen around VND1.2 million/tael within 10 recent days (higher fall than the world’s level) due to world gold price and intervention of State Bank of Vietnam (SBV).
It is said that SBV has directed group of 5 commercial banks and SJC (5 +1 Group) to apply gold transactions by account to balance supply and demand that affect the domestic gold prices.
Gold Loses In New York But Steady Asia Trade
Gold fell in New York last night on lower crude oil, U.S equities and positive economic data.
Spot gold slid to $1,652.21 an ounce. US gold futures lost $20.10 or 1.2 percent to $1,647.10 an ounce.
In Asia trade this morning, the yellow metal held steady on firm dollar prices.
Spot gold was quoted at $1,654.00-$1.655.00 an troy ounce at Kitco.com as of 9:31 am, Hanoi time today.
The 10-year U.S treasury yields rose sharply, lower crude oil prices and higher dollar prices against euro and yen attributed to the gold’s loss in the day.
Some buyers remained on the sidelines as they waited to see if Congressional testimony by Fed Chair Ben Bernanke on Wednesday offers new clues about further easing, traders told Reuters.
Some analysts believe the yellow metal will test December 2011 low by dropping to $1,500 an ounce. In opposite, some investors remain bullish on gold as they are buying deep out-of-the-money call spreads and call options, or the right to buy gold futures.
Local Dollar Stable
Vietnam’s central bank kept dollar midpoint rate to VND20,828 on Wednesday, stable for nearly 4 months. Commercial banks quoted dollar offer at VND20,790-20,860 for bid and ask at the two extremes.
If Vietnam has to raise dollar exchange rate this year, it will not exceed 2-3 percent, the State Bank governor reconfirmed at a press conference on March 12.