Saigon Jewelry Company gold bar price climbed 4.7% to VND144.9 million (US$5,502.59) per tael after declining in several sessions earlier this week. A tael equals 37.5 grams or 1.2 ounces.
But local bullion rates are still down 3.52% for the week and 5.2% from the start of the year. They are around VND11 million per tael higher than global prices.
Gold ring price also surged 4.7% to VND144.8 million per tael on Friday.
Globally, gold prices fell on Friday and were on track for a weekly loss, weighed by concerns around inflation and potential U.S. Federal Reserve interest rate hikes, Reuters reported.
Spot gold was down 0.5% at $4,191.17 per ounce and was heading for a weekly loss of 3.2%. U.S. gold futures for August delivery rose 2.4% to $4,212.70.
Gold fell to an over six-month low on Thursday before closing higher at $4,219.69, as U.S. President Donald Trump called off planned military strikes on Iran and signaled an imminent peace deal.
A person holds gold jewelry at a store in Ho Chi Minh City. Photo by Read/Quynh Tran |
The price is “completely being driven by the geopolitical headlines,” said Edward Meir, an analyst at Marex.
Gold has dropped about 20% since the Iran war began on fears that rising energy costs could stoke inflation, prompting central banks to keep interest rates higher and raising the opportunity cost of holding the non-yielding metal.
“The markets will be paying attention to any signal that the Fed could raise rates, and if they hint at moving in that direction, I think gold could probably break below the $4,000 mark,” said Meir.
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