Vietnam Business & Weather Briefing (May 14): Gold Price Hits 13-week Low

Photo: Tech Marking Inc

Business Briefing

Gold rate

Domestic market: After weeks of keeping its high price, the domestic gold price this morning dropped sharply to less than VND 69 million per tael.

In the early morning, DOJI gold in Hanoi was traded at VND 68.7 million/tael (buying) and VND 69.4 million/tael (selling), down VND 900,000 in both transactions compared to the dawn of the previous day. In Ho Chi Minh City, DOJI brought the price down by VND 700,000 in both transactions, bringing the gold price down to VND 68.8 million (buying) and VND 69.5 million (selling).

SJC's gold price in the early morning today was brought down VND 900,000 in the buying trade and VND 500,000 in the selling.

International market: According to Kitco, the gold market has found itself in a sticky situation as the prices have dropped nearly 4% this week, its worst selloff in roughly a year. After four consecutive weekly losses, the precious metal has fallen to its lowest level in three months. If you look at sentiment in the marketplace, gold might struggle to hold US$1,800 an ounce

Despite disappointing economic news, the gold market cannot catch a break. It appears that the Federal Reserve's aggressive monetary policy stance is working. Inflation expectations have remained well anchored. The gold market faces two significant headwinds: the rising U.S. dollar and bond yields.

Photo: Vietnamnet

Reference Exchange Rate

At the beginning of the May 14 session, the US Dollar Index (DXY) decreased slightly by 0.39%. The dollar fell on Wednesday amid a rally in equities but maintained its sixth straight weekly gain as investors remained concerned about global growth and Federal Reserve policy.

On the domestic market, at the end of the May 13 trading session, the State Bank announced that the central exchange rate of VND 23,163 per USD. The exchange rate of USD for buying and selling transactions at commercial banks is:

Vietcombank: VND 22,950 - VND 23,230

VietinBank: VND 22,875 - VND 23,315

Photo: Sai Gon Dau Tu Tai Chinh

Market news: HSBC predicts Vietnam’s inflation to be capped under 4 percent

In its "Vietnam at a glance" report in May, HSBC Vietnam said that inflation pressure in Vietnam remains low in the ASEAN region. According to the HSBC, in April, headline inflation rose by only 0.2 percent month-on-month, leading to a modest increase of 2.6 percent year-on-year, still within the market's expectations. The main cause of this is the low transport costs, partly thanks to the drop in world oil prices in the month and the reduction of tax on environmental protection in Vietnam.

The report also said that Vietnam is benefiting from the reopening strategy. With the official reopening of its border on March 15, Vietnam welcomed over 100,000 foreign tourists in April, a threefold increase compared to that in March.

For domestic tourism, people's travel needs have exceeded the pre-pandemic level since the beginning of April, which has contributed to the recovery of the retail industry, helping it grow by 5 .8 percent in April. Goods sales increased by 2 percent month-on-month, and spending on services and the travel-related segments also rose by 7 percent month-on-month, signaling a good start for the recovery in the service sector, according to VNA.

Photo: The Thao & Van Hoa

Weather forecast

May 15: Cold air affected the Northern mountainous region. From the afternoon and night of May 15, the cold spreads to other parts of the north, even reaching the North Central and some Central Coastal provinces. Northern and North Central provinces enjoy cool weather, with the lowest temperature from 20-22 degrees. The mountainous areas are from 17-19 degrees.

From the afternoon of May 15 to May 16: The North and Central region will experience moderate to heavy rain. During thunderstorms, there is a possibility of tornadoes, lightning, and strong winds.

Vietnam Business & Weather Briefing (May 13): Reference Exchange Rate Up 12 VND Vietnam Business & Weather Briefing (May 13): Domestic gold price fluctuated strongly, reference exchange rate up VND 12. The northern mountains and midlands will continue ...

Vietnam Business & Weather Briefing (May 12): Reference Exchange Rate for US Dollar Up Vietnam Business & Weather Briefing (May 12): Sudden change in the gold price, Vietnam seeks cooperation with the US to develop a healthy stock market, ...

Vietnam Business & Weather Briefing (May 10): Reference Exchange Rate Up VND 8 Vietnam Business & Weather Briefing (May 10): The State Bank of Vietnam set the daily reference exchange rate for the US dollar up 8 VND ...