Gold fluctuates around 43 million VND/tael
Excluding taxes and processing fees, the current domestic gold price is nearly 2 million VND/tael more expensive than the world gold price.
The price of SJC gold (buy-sell) in Hanoi at 10am on October 10 was traded at 43-43.25 million VND/tael. In Ho Chi Minh City, Da Nang, Nha Trang, Can Tho, the price of gold was 42.95-43.25 million VND/tael. Compared to last weekend, the price of gold decreased by 300,000 VND/tael.
It can be seen that after the State Bank granted licenses to import more gold and trade gold on accounts as well as allowing banks to mobilize gold from the people, the domestic gold price has gradually become closer to the world gold price. From the domestic gold price being nearly 5 million VND/tael more expensive than the world price about 10 days ago, this gap has now narrowed to nearly 2 million VND/tael.
At the same time, in the Asian session on the morning of October 10, the gold price was trading at 1,651 USD/oz, up 12.4 USD/oz compared to the closing session last weekend.
Concerns over European sovereign debt remain a key factor affecting gold prices next week. Most experts predict that gold prices could rise sharply and surpass the psychological level of $1,700/oz.
In the Kitco News Gold Survey, 23 gold traders, investment banks and technical analysts responded. Of those, 16 saw prices rising this week, 3 saw prices falling and 4 saw prices moving sideways.
Arnie Waters, director of AL Waters Capital, a precious metals investment fund, said he is very optimistic about gold and predicts that gold prices could rise to $2,500/oz in 2012. According to Waters' analysis, gold may now be under final pressure from funds liquidating positions in September. Economic problems in the US, Europe and China will make gold the best investment choice.
Morgan Stanley believes that gold will be among the most profitable commodities in 2012 and could set new price records as investors flock to gold to preserve the value of their assets amid economic difficulties.
Mr. Rich DeFalco, President of West Cooper Asset Management, said that statistics from the US Department of Labor last weekend showed that the number of unemployed people in the US was still 14 million, not much changed compared to September, and the unemployment rate was still 9.1%. Since April 2011, the unemployment rate in the US has always fluctuated between 9-9.2%.
The situation in Europe is becoming tense after credit rating agency Fitch downgraded the credit ratings of Italy and Spain.
Supporting the gold rally are a host of major institutions. Morgan Stanley joined Credit Suisse AG and Goldman Sachs Group Inc. in a new report saying gold will be the best performing commodity next year as investors seek to protect their assets against the risk of slowing global growth.
According to Morgan Stanley, gold will increase about 35% in 2012, reaching 2,200 USD/oz and could reach 2,464 USD/oz.
Previously, Goldman Sachs said that gold would increase by about 20% in 2012 and Credit Suisse AG increased its forecast for the average gold price in 2011 from 1,480 USD/oz to 1,575 USD/oz and in 2012 from 1,540 USD/oz to 1,850 USD/oz.
Gold’s safe haven appeal could attract demand if investor anxiety heats up again. However, European uncertainty has not been entirely convincing to analysts, with some saying that if the debt crisis leads to a recession in Europe, deflation could follow, reducing gold’s appeal as an “inflation hedge.”
On October 10, the average interbank exchange rate was listed at 20,653 VND/USD to 20,648 VND. Many commercial banks also increased the USD price according to the interbank exchange rate.
According to VOV
