Vietnam's Gold price rebounds along with Global trend
Vietnam's average Gold price closed at 44.72-M Vietnamese Dong (VND) (US$2,148) a tael (equivalent to 1.2 oz) Friday, an increase of 200,000 VND ( US$9.6) over Thursday, but down 100,000 VND (US$4.8) against last week's closing session.
In the capital Hanoi, the national SJC-branded Gold was traded with buying price at 44.50-M VND (US$2,138) a tael Friday and selling price at 44.72-MVND (US$2,148) a tael, an increase of 200,000 VND (US$9.6) against the prior trading day.
Saigon Jewelry Joint-Stock Company in southern Ho Chi Minh City quoted buying price as the same, and selling price at 20,000 VND ( US$0.9G) lower, than those in Hanoi.
During the week, global spot gold price posted a 6-wk low price at US$1,663 oz Wednesday, which influenced domestic Gold price down at 44.20-M VND (US$2,123) per tael.
However, the gap between global and domestic gold price was still at 2.1-M VND (US$100.00) apart in favor of the domestic one, much higher than 400,000 VND (US$19.2) as expected by the State Bank of Vietnam.
Insiders said global Gold price declined to a lower average level in the recent 200 transaction days, a sign showing investors were trying to purchase more gold.
The Royal Bank of Scotland (RBS) forecast that its demand of Gold in Y 2012 might reduce sharply by 30%, and central banks worldwide would purchase about 300 tons of Gold this year, lower than 439.7 tons in Y 2011.
According to RBS, China, Russia and India would become the leading gold owners, while Switzerland, France and Netherlands would be the World's biggest Gold sellers in Y 2012.
Analysts said global Gold price would soon rebound and might surpass US$1,800 in the next few months.
Since the beginning of the year, global Gold price increased 14%, compared to 10% in Y 2011.
Meanwhile, the State Bank of Vietnam (SBV) has maintained the foreign exchange rate at 20,828 VND per one USD since 26 December 2011, while exchange rates at commercial banks on Friday were traded at 20,810 20,870 VND for one dollar buying/selling, down 60 VND/USD than Thursday.
On the Black Market, the Greenback is traded at 20,800 20, 820 VND per US$1.00 buying-selling, lower than SBV rate.
The Vietnamese dong has been strengthened against the USD on both the official and Black Markets since January. SBV Governor Nguyen Van Binh said SBV would try to maintain a stable foreign exchange market with currency devaluation this year of less than 3%.
Paul A. Ebeling, Jnr. Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.