Vietnam Daily News

December 14: Vietnam gold continues falling to 43.85m dong, US dollar rises

Written by Dailynews.vn Thursday, 15 December 2011 16:44

Vietnam gold price this morning December 13 continued dropping to around 43.85 million dong a tael (1.2 ounces) against yesterday's closing price (44.15 million dong) as world gold fell around 2.5 percent last night. Local official dollar rate was raised by 10 dong to 20,813 dong.

By 9:00 a.m Hanoi time, Saigon Jewellery Company, the biggest gold firm in Vietnam, collected gold at 43.60 million dong and sold at 43.85 million dong a tael.

Sacombank Jewellery Company bought gold at 43.55 million dong and sold at 44.80 million dong a tael.

Rong Thang Long gold, a product of Bao Tin Minh Chau company, was traded at 42.70 million dong/tael and 42.95 million dong/tael for bid and ask, respectively.

Phu Nhuan Jewlery Company bought its branded gold so-called Phuong Hoang PNJ-DAB at 43.55 million dong and sold at 43.70 million dong a tael.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at 43.68 million dong and sold at 43.91 million dong.

On the world market, gold fell around 2.5 percent last night, posting its largest two-day loss in nearly three months, as the dollar rallied after the Federal Reserve held its policy steady with no new market stimulus.

Technical selling also weighed on bullion after the Fed pointed to turmoil in Europe as a big risk to the US economy. The central bank left the door open to further monetary easing.

"Gold is on the defensive in a knee-jerk move. Perhaps the market is disappointed that there is no additional easing, and higher Treasury yields and weaker euro also fit with a weaker gold price," said James Steel, chief commodity analyst at HSBC.

An initial rise in US government bond yields and the dollar's surge against the euro also pressured gold, as investors digested the Fed's post-meeting policy statement.

Spot gold hit a seven-week low of $1,624.29, and was down 2.4 percent at $1,626.40 an ounce, a day after posting its biggest one-day drop in nearly three months.

On charts, gold's next major technical support will be its 200-day moving average at $1,617 an ounce.

US gold futures settled down $5.10 at $1,663.10 an ounce. Volume was slightly lower than its 30-day average, in line with recent weaker trend near the year end.

Vietnam's central bank raised the dong/US dollar exchange rate by 10 dong to 20,813 dong today, after 40 days unchanged. The forex rate gained 185 dong per dollar, or 0.9 percent since October 5.

Vietcombank, Asia Commercial Bank, Eximbank and some other banks bought the dollar at between 21,000- 21,018 dong/US dollar and sold the greenback at 21,021 dong/US dollar.

This morning, US dollar on the free market stayed at around 21,140 dong (purchase) and 21,180 dong (sell).

Source: www.intellasia.net/news/articles/finance/111350815.shtml