Gold price flickering, dollar staying put

January 15, 2009

VietNamNet Bridge – The gold price made an unusual effort, successfully climbing to the VND 17.6 million/tael threshold yesterday afternoon. However, it could not stay firm at that height, having fallen by VND 12000/tael this morning.

SJC brand name gold was lowered by SJC Company by VND 140,000/tael this morning. At 10:00 am this morning, SJC gold was traded at VND 17.36 million/tael (purchase price) after it dropped to VND 17.35 million at opening time. The sale price was raised to VND 17.48 million/tael at the same time, an increase of VND 30,000 over the opening price, but this represented a decrease of VND 120,000/tael over yesterday afternoon.


As such, the domestic gold price is now on the increase, which has been closely following the international prices.


On the ACB gold trading floor, gold was traded at VND 17.43 million/tael this morning, a slight decrease in comparison with the opening price level at VND 17.45 million.


The gold price proves to remain unpredictable for investors. Though the gold price has decreased, the transaction volume has not seen any considerable increases, with only orders of trading 37,000 taels were matched. 


At 10:20 am on January 15, Hanoi time, the gold price was at USD $808.30/oz, a sharp decrease from USD $820.30 seen in the previous New York’s trading session. In the US market, the gold price once climbed to USD $830.60/oz, but then dropped to the deepest low of USD $805.90. The gold price performance chart shows that the gold price is still hovering within a narrow area; while there have been no clear factors that support the price increases.


The value increase of the dollar against the euro on the threshold of the meeting of the EU Central Bank proves to be the main factor that has lessened the attractiveness of gold. Currently, one euro can be converted to USD $1.31 in New York. The oil price, with February delivery this morning (Hanoi time), was reportedly down to USD $36.64/barrel, down by USD 0.64/barrel.


In Germany, one of the biggest economies in Europe, the government of the country has approved a demand stimulus package worth Euro 50 billion, or USD $67 billion. In the US, President-elect Obama is planning a USD $350 billion economy stimulus package. The retail turnover of the country, which has been released, showed a decrease of 2.7%, double the previous forecast level due to bad news from the labor market.


While the precious metal price remained wavering between increases and decreases, the dollar price in Hanoi has been staying firmly high.


At 3:00 pm yesterday afternoon, the dollar price on the black market in Hanoi was reportedly at the level higher by VND 130/US$ over the previous day, hitting VND 17,700/US$1.00.


Meanwhile, the interbank exchange rate, announced by the State Bank of Vietnam for January 14 saw a VND 1/US $1 decrease over the previous day, at VND 16,975/US $1.00.


Analysts said that as people expect the dollar price will hit the VND 18,000/USD $1.00 threshold in the last days of the lunar year, they have been trying to purchase dollars at this moment.


(Source: VNE)

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