Gold, dollar rebound on the ‘street'
Both gold and the US dollar rebounded strongly on the "street" on Nov. 8
after having cooled when the State Bank of Vietnam announced on Nov. 5
that it would inject more dollars into the market.
Both gold and the US dollar rebounded strongly on the "street" on Nov. 8
after having cooled when the State Bank of Vietnam announced on Nov. 5
that it would inject more dollars into the market.
Details of the dollar infusion have yet to be published.
Prices at gold shops in Hanoi and HCM City changed at least seven times during the day as the Sai Gon Jewellery Co; the Sacombank Jewellery Co; Bao Tin Minh Chau; Agribank Jewellery Co and Phu Nhuaân Jewellery Co all quoted buy-sell prices of 35.65-35.85 million VND (1,715 USD) per tael, up 1.81 percent or 650,000 VND per tael against Nov. 5.
The gold price had tumbled to below 35 million VND per tael following the proposed dollar infusion last weekend. It is now up about 30 percent against last year.
The global price for the precious metal set a record above 1,398 UAD an ounce - one tael equals 1.2 troy ounces – on Nov. 8 before a rebound of the dollar caused prices to retreat, although short-term sentiment remains upbeat.
"The domestic price now is higher than the global price and this is likely to encourage smuggling; make the dollar more expensive and have an adverse effect on the gold price," warned Sacombank Jewellery Co general director Nguyen Ngoc Que Chi.
"All this will combine into an unbreakable cycle.
"If the authorities want to stop the dollar's appreciation, they should provide details of their dollar infusion plan," she said.
The general director noted that although gold demand was not too high, it was higher than supply.
The US dollar continued to climb in value on the black market on Nov. 8 to about 20,720-20,950 VND, up 300 VND against the previous day, while currency dealers in both Hanoi and HCM City changed the rate by the hour amid fevered trading.
The dollar reached a record 21,050 VND last week.
The central bank official rate remained at 18,932 VND; commercial banks quoted a nominal selling price of 19,500 VND./.
Details of the dollar infusion have yet to be published.
Prices at gold shops in Hanoi and HCM City changed at least seven times during the day as the Sai Gon Jewellery Co; the Sacombank Jewellery Co; Bao Tin Minh Chau; Agribank Jewellery Co and Phu Nhuaân Jewellery Co all quoted buy-sell prices of 35.65-35.85 million VND (1,715 USD) per tael, up 1.81 percent or 650,000 VND per tael against Nov. 5.
The gold price had tumbled to below 35 million VND per tael following the proposed dollar infusion last weekend. It is now up about 30 percent against last year.
The global price for the precious metal set a record above 1,398 UAD an ounce - one tael equals 1.2 troy ounces – on Nov. 8 before a rebound of the dollar caused prices to retreat, although short-term sentiment remains upbeat.
"The domestic price now is higher than the global price and this is likely to encourage smuggling; make the dollar more expensive and have an adverse effect on the gold price," warned Sacombank Jewellery Co general director Nguyen Ngoc Que Chi.
"All this will combine into an unbreakable cycle.
"If the authorities want to stop the dollar's appreciation, they should provide details of their dollar infusion plan," she said.
The general director noted that although gold demand was not too high, it was higher than supply.
The US dollar continued to climb in value on the black market on Nov. 8 to about 20,720-20,950 VND, up 300 VND against the previous day, while currency dealers in both Hanoi and HCM City changed the rate by the hour amid fevered trading.
The dollar reached a record 21,050 VND last week.
The central bank official rate remained at 18,932 VND; commercial banks quoted a nominal selling price of 19,500 VND./.
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