Gold slips VND500,000 from all-time high, dollar keeps rising

Local gold prices Wednesday slid about VND500,000 off the all-time high to VND32.8-32.9 million, while dollar prices kept pushing forward to VND20,100 in the black market.

Ho Chi Minh City’s SJC bullion was listed at VND32.8 million a tael and VND32.9 million a tael for bid and ask respectively, down VND70,000 a tael from opening prices. A tael is equal to 37.5 grams or 1.2 troy ounces.

Local gold trading was lackluster this morning as investors stayed on the sidelines on price volatility. Bid and ask spread were mostly narrowed to VND100,000 a tael to encourage profit-taking.

In Asia trade this morning, spot gold was flat at $1,336 an ounce. It fell to a two-week low of $1,334.45 on Tuesday, compared to an all-time high of $1,387.10 hit last week.

In the local forex market, dollar bid and ask prices at gold shops rallied to VND20,000 and VND20,050. But Vietcombank’s dollar bid and ask were unchanged at VND19,490 and VND19,500 respectively.

In the global market, the dollar soared at the news that China central bank raised the lending interest rate by 0.025 percent to curb inflation and cooling off the overheating realty market, and held steady on Wednesday morning as investors poised to cut short positions.

Vietnam central bank governor on Tuesday ruled out the rumors of another dong devaluation, adding that the central bank will likely take actions to improve the liquidity in the market in the coming time.

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Gold slips VND500,000 from all-time high, dollar keeps rising

Local gold prices Wednesday slid about VND500,000 off the all-time high to VND32.8-32.9 million, while dollar prices kept pushing forward to VND20,100 in the black market.

Ho Chi Minh City’s SJC bullion was listed at VND32.8 million a tael and VND32.9 million a tael for bid and ask respectively, down VND70,000 a tael from opening prices. A tael is equal to 37.5 grams or 1.2 troy ounces.

Local gold trading was lackluster this morning as investors stayed on the sidelines on price volatility. Bid and ask spread were mostly narrowed to VND100,000 a tael to encourage profit-taking.

In Asia trade this morning, spot gold was flat at $1,336 an ounce. It fell to a two-week low of $1,334.45 on Tuesday, compared to an all-time high of $1,387.10 hit last week.

In the local forex market, dollar bid and ask prices at gold shops rallied to VND20,000 and VND20,050. But Vietcombank’s dollar bid and ask were unchanged at VND19,490 and VND19,500 respectively.

In the global market, the dollar soared at the news that China central bank raised the lending interest rate by 0.025 percent to curb inflation and cooling off the overheating realty market, and held steady on Wednesday morning as investors poised to cut short positions.

Vietnam central bank governor on Tuesday ruled out the rumors of another dong devaluation, adding that the central bank will likely take actions to improve the liquidity in the market in the coming time.

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• All That Glitters Is Not Gold
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• Bank denies new rumours of devaluation

SBV licenses gold imports, gold prices slightly down

The State Bank of Vietnam officially licensed some local enterprises to import 10 tons of gold, or over 200,000 taels, pulling local gold prices down VND300,000 a tael to VND32.8million a tael on Thursday.

The gold import quota is 200-300 kilograms each, and the license will valid through next Tuesday.

Earlier, local gold prices climbed to its lifetime record high of VND33.2 million a tael after an brief ease back to VND32.7million a tael.

The enterprises were given quota for local gold-trading firms to import gold include Sai Gon Jewelry Holding Co (SJC), Phu Nhuan Jewelry Joint Stock Co (PNJ), Agribank Gold, Silver and Gemstone Co, and Sacombank Jewelry Co Ltd (SBJ) among others.

It is estimated that 36 tons of gold were exported in the first six months of the year, according to the General Statistics Office.

Domestic gold prices Wednesday soared to a new record of VND33 million per tael (US$1,690), an increase of VND1.4 million ($72) per tael over previously-quoted price, as speculators created a run on gold shops.

A tael is equivalent to 1.2 ounces.

The gold-selling districts in Hanoi and Ho Chi Minh City were thronged with people and saw prices change at least four times in the morning, with Sai Gon Jewelry Co (SJC), Sacombank Jewelry Co, Bao Tin Minh Chau, Agribank Jewelry Co and Phu Nhuan Jewelry Co quoting buy/sell prices at VND32.85/33 million.

Domestic gold prices have increased by over 24.4 percent since January, when prices stood at about VND26.5 million ($1,360).

The increase made domestic gold price be VND1 million ($51.28) higher than global gold price, which ignites concerns involving gold smuggling to take profits. Domestic price is normally just VND200,000-300,000 higher than global price.

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Gold price surges on high demand

SJC gold is still the benchmark for bullion trade in Vietnam. The local gold price hit new record of VND30.74 million per tael on Monday - Photo: Le Toan

HCMC – Local gold prices on Monday continued hitting new records on higher demand as Saigon Jewelry Holding Co. (SJC) quoted selling price at VND30.74 million per tael, increasing VND280,000 per tael from late last week.

Ton The Vinh Quyen, sales director of Sacombank Jewelry Co., said on Monday morning alone the company sold 3,000 taels while the buying volume was modest. A tael equals to 1.2 toy ounces.

Crowds of gold buyers made local gold prices suddenly increase on Monday morning while global prices rose slightly. Buying here eased in the afternoon.

Quyen said if the global gold price exceeds the level of US$1,300 an ounce, it would continue rising in the future. However, he expected the gold price to decline after the consecutive record highs in recent days.

Nguyen Cong Tuong, deputy head of sales at SJC, said the trading volume of the company on Monday was much higher than late last week. He said the buyers were mainly investors who borrowed gold from banks to sell in the past and now had to buy gold again to cut losses.

Meanwhile, Nguyen Thi Cuc, deputy general director of Phu Nhuan Jewelry Co. (PNJ), said as gold demand increased, gold traders had to compete with each other for sources, making a shortage in short term and pushing the price up.

Local gold price is about VND200,000 higher than global price. Cuc said given the difference, enterprises did not want to import gold, but her company had sent an import proposal to the central bank to import immediately when the price is higher.

Gold was traded at US$1,297.3 an ounce by 5:00 pm on Monday on European market, rising US$0.3 an ounce from late last week.

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Gold price surges on high demand

SJC gold is still the benchmark for bullion trade in Vietnam. The local gold price hit new record of VND30.74 million per tael on Monday - Photo: Le Toan

HCMC – Local gold prices on Monday continued hitting new records on higher demand as Saigon Jewelry Holding Co. (SJC) quoted selling price at VND30.74 million per tael, increasing VND280,000 per tael from late last week.

Ton The Vinh Quyen, sales director of Sacombank Jewelry Co., said on Monday morning alone the company sold 3,000 taels while the buying volume was modest. A tael equals to 1.2 toy ounces.

Crowds of gold buyers made local gold prices suddenly increase on Monday morning while global prices rose slightly. Buying here eased in the afternoon.

Quyen said if the global gold price exceeds the level of US$1,300 an ounce, it would continue rising in the future. However, he expected the gold price to decline after the consecutive record highs in recent days.

Nguyen Cong Tuong, deputy head of sales at SJC, said the trading volume of the company on Monday was much higher than late last week. He said the buyers were mainly investors who borrowed gold from banks to sell in the past and now had to buy gold again to cut losses.

Meanwhile, Nguyen Thi Cuc, deputy general director of Phu Nhuan Jewelry Co. (PNJ), said as gold demand increased, gold traders had to compete with each other for sources, making a shortage in short term and pushing the price up.

Local gold price is about VND200,000 higher than global price. Cuc said given the difference, enterprises did not want to import gold, but her company had sent an import proposal to the central bank to import immediately when the price is higher.

Gold was traded at US$1,297.3 an ounce by 5:00 pm on Monday on European market, rising US$0.3 an ounce from late last week.

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