Local gold prices pared the early loss to edge down to VND41.7 million/tale threshold on Friday afternoon as world gold prices recovered 1% today after a sharp fall yesterday, local premium soared to VND2.2 million a tael.

Hanoi SJC gold is quoted at VND41.57million/tael for bid and VND41.74 million/tael for ask, respectively as of 14:00 local time.

Thang Long gold, produced by Bao Tin Minh Chau company, is quoted at VND40 million/tael for bid and VND40.4 million/tael for ask, trading at VND1.7 million discount  compared to the SJC branded one.

SBJ Sacombank was quoted at VND41.64 –VND41.72 million/tael for bid and ask, respectively.

Earlier in the morning, local gold fell as much as VND200,000/tael to VND41.55 million a tael before bouncing back in the afternoon.

Domestic gold premium soared to  VND2.2 million/tael today, figure is calculated under the Vietcombank rate.

Gold Rose after EU Agreement on Bank Supervision

Gold rose more than 1% on Friday after European leaders agreed on the recapitalisation of banks without boosting government debt, helping ease fears over the region's debt crisis.

Spot gold was up 1% at $1,566.84 an ounce by 0415 GMT. Friday's rise has helped gold erase losses for June, and it is on course to post its first gain in five months.

But for the second quarter, bullion is still down more than 6 percent, its steepest loss since 2004. Gold has fallen more than 12 percent from the 2012 peak of around $1,790, and 18 percent from an all-time high above $1,920 reached in September 2011.

There is strong support for gold at $1,523, and if that holds, the precious metal may have the momentum to match last year's high,  Reuters quoted  Lynette Tan, an analyst at Phillip Futures as saying.

"In the long run we're still bullish on gold. It's still likely to hit last year's high of $1,920. The global economy is not doing well and we expect safe-haven demand to be back for gold," said Tan.

 

Source StoxPlus