Gold price bouncing unexpectedly

The gold price this morning unexpectedly rose by VND100,000/tael after many days of staying at VND19.5 mil;opm/tael. However, the market was not bustling on the first day of the week.

At opening, SJC Hanoi rose the prices to VND19.5 million/tael (purchase) and VND19.65 million/tael (sale), up by VND20,000 and VND80,000/tael respectively over last Saturday.

At Phu Quy Gold, Silver and Gemstone Company, SJC gold was traded at VND19.53-19.6 million/tael (sale and purchase), increasing by VND70,000-80,000/tael. The Thang Long dragon trademark gold of Bao Tin Minh Chau was VND19.5 million/tael and VND19.58/tael respectively, up by VND80,000 and VND60,000/tael.

At Sacombank, Than Tai (God of Luck) trademark gold had opening prices at VND19.55 million -19.63 million/tael (sale and purchase), up by VND100,000/tael.

Gold traders have predicted that the world’s gold recovery will make purchases become the main tendency in the domestic market in upcoming days. They said that many investors who have received a fat profit from gold sales recently still do not know where to inject money.

The gold price in Asia’s market this morning surprisingly skyrocketed from $939.6/oz late last week to $950/oz. The world’s price at $939.6/oz should be equal to VND19.8 million/tael (the exchange rate is VND17,480/US$1.00), while the world’s price at $950, which would be equal to VND20.2 million/tael.

Late last week the world’s finance market heard bad news about the US economy, as a report showed that the GDP of the biggest economy in the world had the biggest quarterly decrease in the last 26 years. The US’s GDP dropped by 6.2% in the last quarter of 2008 in comparison with the same period of 2007.

The news from Citigroup has raised concerns about the future of the US banking system, though FED Chairman Ben Bernanke affirmed that banks will not be nationalized. Berkshire Hathaway, the investment group of billionaire Warren Buffett has reported big losses for the last quarter of 2008.

The gold market remains quiet despite the information about the gold price increases. On ACB gold trading floor, orders were matched at 9.55 am at between VND19.93 million to nearly VND20 million/tael, which was still lower than the world’s level. On Than Tai (God of Luck) trading floor run by Sacombank, the trading price hovered around VND19.56-19.63 million/tael.

In the foreign currency market, the black market dollar has seen a slight decrease over late last week. Meanwhile, the exchange rate rose slightly on the inter-bank market. The inter-bank exchange rate announced by the State Bank of Vietnam for today is VND16,972/US$1.00, up by VND1/US$1.00 over last Friday. Vietcombank’s purchase and sale prices are the same at VND17,481/US$1.00, up by VND1/US$1.00.

VietNamNet, DDDN

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