Vietnam’s gold prices fell Monday morning amid a drop in global bullion rates.
Saigon Jewelry Company gold bar price dropped 0.96% to VND165.9 million (US$6,301.76) per tael. Prices are still up 8.6% from the start of the year.
Gold ring price similarly slid to VND165.4 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold prices fell on Monday, as a lack of progress in U.S.–Iran peace negotiations pushed oil prices higher, fueling concerns that elevated inflation could keep interest rates higher for longe, Reuters reported.
Spot gold fell 0.6% at $4,684.32 per ounce. U.S. gold futures for June delivery lost 0.8% at $4,692.70.
The dollar firmed, making greenback-priced bullion more expensive for holders of other currencies.
“We’re essentially seeing an unwinding of hopes for an imminent (peace) deal, and gold is feeling the pinch from the renewed rise in crude prices,” said Tim Waterer, chief market analyst at KCM Trade.
A person holds gold bars at a store in Ho Chi Minh City. Photo by Read/Thanh Tung |
Rising crude oil prices risk pushing inflation higher, increasing the prospects of elevated interest rates. While gold is traditionally seen as a hedge against inflation, high interest rates tend to weigh on the non-yielding asset.
“In the near-to-medium term, the $4,400 to $4,800 range still looks firmly in play while we remain in this ceasefire-without-a-peace-deal stalemate,” Waterer added.
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