Vietnam gold prices hovered at VND44 million a tael this morning, dollar prices were stable for the forth consecutive days after being settled to the highest rate in the history last Friday.
SJC gold in the free market was traded at VND43.730 million and VND44.030 million/tael for bid and ask respectively by 9:15 Hanoi time. SJC Hanoi last quoted at VND43.690 for bid, VND44.010 for ask respectively.
Sacombank-SBJ gold prices were listed at VND43.750 million/tael -VND44.050million/tael for bid and ask, respectively.
Rong Thang Long gold, a product of Bao Tin Minh Chau company, was trading at VND43.730 million/tael and VND44.030 million/tael for bid and ask, respectively.
By 9:20 Hanoi time, spot gold in Kitco was quoted at $1651.60 – 1653.30 for bid and ask respectively. Therefore, domestic gold premium stood high at VND0.8 million/tael today (1.8 percent) calculated at the dollar ask in the black market, or 2 times higher than the SBV’s target of VND400,000/tael.
Global Markets: Gold Slightly Up in New York and Steady Asia
In the New York trade last night, spot gold was up 0.9 percent at $1,655.04 an ounce. Futures volume was around half its 30-day norm during Monday’s gains, similar to a weaker-than-usual trend during the last several weeks, suggesting bullion’s rally may not hold.
In Asia trade this morning, gold prices held steady after gaining for two consecutive sessions to settle at $1654.09 an ounce by 9:30 am Hanoi time.
Speculators Cut Bullish Exposure To Gold Again – CFTC Data
Speculators continue to reduce their bullish exposure to US gold futures and options, Kitco reported, citing US government data released late Friday.
Figures from the US Commodity Futures Trading Commission showed that speculators in both the disaggregated and legacy Commitments of Traders reports cut the net-long positions in futures and options for gold on the Comex division of the New York Mercantile Exchange for the week ending October 18.
Managed-money funds cut 3,724 gross longs and added 223 gross shorts, reducing their net-long position to 127,689 contracts. Producers and swap dealers added gross longs and cut gross shorts, reducing their net-short position.
Non-commercials also cut gold gross longs, by 7,548 contracts, and added 488 gross shorts, lowering their net-long position to 159,985 contracts. Commercials cut heavily from both sides, reducing their net-short position.
The reduction of speculative long positions is a actually a positive sign for gold, Commerzbank said, but added “a price rally is only conceivable at present if a broad rally based on relief emerges on financial markets after the EU summit and pulls gold along with it.”
Barclays Capital attributed the reduction as a combination of long liquidation and fresh short positions being established, and also sees the drop as positive for higher prices in the long run. “Non-commercial positions now make up 29 percent of open interest, thus presenting a cleaner base for fresh longs to build from,” they said.
Local Dollar Stable
Vietnam’s central bank kept the dollar exchange rate at VND20,748 for the forth straight days after raising it to the all time highest level on October 21,2011.
Banks continued offering dollar exchange rate at the ceiling of VND20,955 en mass