Saigon Jewelry Company gold bar price started the week 0.34% lower at VND148 million (US$5,630.05) per tael.
Gold ring price declined by roughly the same rate to to VND147.9 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold prices eased on Monday as recent U.S.-Iran strikes in the Gulf pushed oil prices higher, while expectations of U.S. Federal Reserve interest rate hikes further weighed on the non-yielding metal, Reuters reported.
Spot gold was down 0.7% at $4,061.35 per ounce. U.S. gold futures for August delivery lost 0.5% to $4,076.40. The metal was headed for a fourth consecutive monthly loss of 10.4%.
A person holds gold bars at a store in Ho Chi Minh City. Photo by VnExpress/Quynh Tran |
“U.S. and Iran were at it again over the weekend, with fresh military strikes reported from both parties, which casts further doubt over how long oil can stay at these subdued levels and therefore over the broader inflation and interest rate outlook,” said Tim Waterer, chief market analyst at KCM Trade.
Elevated crude oil prices can fuel inflation and chances of interest rate hikes, and while gold is typically seen as an inflation hedge, it loses its appeal as a non-yielding asset in a high interest-rate environment.
“Gold could see the $5,000 level again this year but this would be based on further de-escalation, oil having a sustained move to pre-war levels to dull the inflationary impact of the conflict, and a softer dollar,” said Waterer.
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