VietNam Business: million tael

Showing posts with label million tael. Show all posts

Monday, February 21, 2011

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.

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.

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.

Sunday, January 23, 2011

Lifted import quota cools gold rush

HA NOI — Domestic gold prices yesterday plunged by VND1.2 million (US$61.53) from Thursday's record high to around VND31.85 million ($1,630) per tael, following the State Bank of Viet Nam's announcement late Thursday that it had approved additional gold imports. A tael is equal to 1.2 ounces.

Gold-selling districts in Ha Noi and HCM City saw prices change at least three times in the morning and early afternoon, with Saigon Jewelry Co, Sacombank Jewelry Co, Bao Tin Minh Chau, Agribank Jewelry Co and Phu Nhuaân Jewelry Co each quoting buy/sell prices at VND32.1-32.24 million per tael.

But late Thursday, with the domestic gold price VND1 million (around $50) higher than global prices, State Bank governor Nguyen Van Giau decided to allow 10 major gold trading enterprises to import an additional three tonnes of the precious metal over the course of the next week.

It marks the second time the central bank has allowed additional gold imports this year, allowing seven tonnes to be imported in July – a figure decried as too low.

"When people knew the gold import quota was so restrictive, many bought up gold," said Sacombank Jewelry Co general director Ton The Vinh Quyen.

But not everyone welcomed yesterday's move by the State Bank.

"Gold imports at this time may soak up the limited supply of dollars, while helping drive inflation up in the last two months of the year, when it is usually higher anyway before the lunar new year," said Do Thi The, a forex investor.

Similar concerns yesterday drove the cost of the greenback on the black market to VND19,850-19,880, about VND20 higher than on Thursday. However, bank exchange rates remained unchanged at VND19,470-19,500 per dollar, while the interbank rate continued at VND18,932.

The State Bank again yesterday denied rumours of a dollar shortage, saying that it continued buying up dollars from credit institutions in the third quarter, suggesting a plentiful dollar flow in circulation. However, yesterday's comments from the State Bank marked the third time since February it has issued a similar message to the public. — VNS

Friday, January 21, 2011

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.

Thursday, December 30, 2010

Speculators cause domestic gold hike

The price of gold on the local market has risen due to possible speculation rather than a supply shortage, according to Nguyen Van Giau, governor of the State Bank of Vietnam (SBV).

The global gold price set new records in the past few days, as did the domestic gold market.

The SBV and the Vietnam Gold Association had kept a close watch on the market in the last few days, and discovered there was no shortage of gold, Giau said, adding that speculation was possibly the cause for the price rise.

Domestic gold prices in August and the first half of September were lower than the world price. But currently the domestic price is VND400,000 per tael higher than the global price.

The SBV was working with other agencies, including the police and market management, to discover the reasons behind the price hikes.

"With this kind of sensitive item, our policy is not to completely ban gold imports, but gold companies are not permitted to import any volume they want," Giau said.

"We are establishing a management framework for gold trading and imports so that it is suitable with a market economy. We will collect ideas from ministries and industries when we complete it."

Nguyen The Hung, general director of the Vietnam Gold Investment and Trading Co, said the gold price on the domestic market would be equal or even lower than the world price if the SBV permitted gold importers to import gold.

However, the government has stopped granting permits for gold imports, which indicates that it no longer considers gold an essential item, according to an expert.

In addition, the higher gold price had not affected people's lives since few people conducted their transactions in gold, he said.

The gold price on the domestic market on Thursday morning fell to VND31.15 million (US$1,597) per tael (1.2 ounces) after it reached a record of more than VND31.3 million ($1,605 USD) per tael on Wednesday, following an upward trend in global gold prices.

On Thursday morning, SBJ gold was also bought and sold at VND31.15 million ($1,597) and VND31.18 million ($1,599) per tael, respectively.

Sai Gon Jewelry Holding Co on the same day bought the precious metal at VND31.14 million and sold it at VND31.18 million VND per tael, a reduction of 130,000 – 170,000 VND against Wednesday.

Most gold shops in Ho Chi Minh City Wednesday raised their price by more than VND700,000 ($21.3) over the previous day’s price to VND31.25-31.36 million per tael.

The global gold price on that day reached an all-time high of $1,313 an ounce on speculation that a global economic recovery would stoke inflation. In Asia, the metal slightly fell to $1,309 an ounce in the morning.

The weakening of the US dollar on the world market has also contributed to the gold price hike, analysts have said.

Speculators cause domestic gold hike