Vietnam Daily News

December 13: Vietnam gold sharply drops to around 44.09 m dong, dollars stable

Written by Dailynews.vn Wednesday, 14 December 2011 15:44

Vietnam gold price this morning December 13 sharply fell to around 44.09 million dong a tael (1.2 ounces) against yesterday's closing price (44.6 million dong) as world gold dropped around 3 percent last night, its largest one-day drop in nearly three months. Local official dollar rate was still kept at 20,803 dong, unchanged from October 28.

By 9:00 a.m Hanoi time, Saigon Jewellery Company, the biggest gold firm in Vietnam, collected gold at 44.09 million dong and sold at 43.84 million dong a tael.

Sacombank Jewellery Company bought gold at 43.84 million dong and sold at 44.09 million dong a tael.

Rong Thang Long gold, a product of Bao Tin Minh Chau company, was traded at 43.05 million dong/tael and 43.35 million dong/tael for bid and ask, respectively.

Phu Nhuan Jewlery Company bought its branded gold so-called Phuong Hoang PNJ-DAB at 43.90 million dong and sold at 44.10 million dong a tael.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at 43.80 million dong and sold at 44.10 million dong.

On the world market, gold dropped around 3 percent last night, its largest one-day drop in nearly three months, as doubts over a deal for European economic integration triggered a technical breakdown.

Bullion's decline dwarfed losses in the equity and commodity markets after a European summit agreement failed to restore market confidence and borrowing costs in Italy and Spain rose.

Gold futures investors turned to put options to hedge downside risks, as heavy sell-stops below $1,700 an ounce sent the metal to its lowest level since late October.

Spot gold dropped 2.7 percent to $1,663.86 an ounce, having touched a near two-month low of $1,657.04.

"In the near term, we believe gold will push lower, at least down to the $1,615 area but possibly more," said Tom Fitzpatrick, chief technical strategist of CitiFX, Citigroup's technical research unit.

"The head-and-shoulder top... suggests that we can get a lot closer to the lows we saw in September, down toward or below $1,550 an ounce," he said.

Head-and-shoulders chart patterns - which consist of a major rally or the head between two shoulders or smaller rallies - are considered reliable reversal patterns by analysts.

The next major chart support will be spot bullion's 200-day moving average at around $1,615 an ounce.

US gold futures settled down $48.60 at $1,668.20 an ounce. Trading volume was about 10 percent below its 30-day average, in line with recently weaker turnover ahead of the year's end.

Vietnam's central bank continued to keep the dong/US dollar exchange rate at 20,803 dong today, unchanged from October 28, after weakening the dong for 14 times since October 5,2011. The forex rate gained 175 dong per dollar, or 0.85 percent since then.

Vietcombank, Asia Commercial Bank, Eximbank and some other banks still bought the dollar at between 20,990- 21,006 dong/US dollar and sold the greenback at 21,011 dong/US dollar.

This morning, US dollar on the free market stayed at around 21,100 dong (purchase) and 21,140 dong (sell).

Source: www.intellasia.net/news/articles/finance/111350696.shtml