Vietnam gold prices declined Monday morning as global bullion rates fell on news that the Strait of Hormuz is closed again.
Saigon Jewelry Company gold bar price starts the week 0.4% lower at VND171.3 million (US$6,505.03) per tael.
Gold ring price similarly fell to VND170.8 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold prices inched lower on Monday as the dollar firmed and oil prices rose amid news that the Strait of Hormuz is closed again after both the U.S. and Iran said the other party had violated their ceasefire deal by attacking ships over the weekend, Reuters reported.
Tehran also said it would not participate in a second round of negotiations that the U.S. had hoped to kick off before the ceasefire expires on Tuesday.
Spot gold was down 0.7% at $4,793.98 per ounce after hitting its lowest level since April 13 earlier in the session. U.S. gold futures for June delivery fell 1.4% to $4,813.60.
Gold jewelry at a store in Ho Chi Minh City. Photo by VnExpress/Quynh Tran |
The dollar index strengthened, making greenback-priced bullion more expensive for other currency holders.
Gold prices have fallen about 8% since the U.S. and Israel launched strikes on Iran in late February, on concerns that higher energy prices could stoke inflation and keep global interest rates higher for longer.
While gold is considered an inflation hedge, higher interest rates crimp demand for the non-yielding asset.
“In the interim, we still expect gold’s directional trade to take cues from broader risk sentiment, and this is highly dependent on how ceasefire talks pan out,” said Christopher Wong, a strategist at OCBC.
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