Gold bar dropped 1.35% to VND146 million (US$5,551.85) per tael. A tael equals 37.5 grams or 1.2 ounces.
Gold ring declined 1.35% to VND145.8 million per tael. Gold prices in Vietnam have fallen 4.6% so far this year.
Globally gold prices fell more than 1% on Tuesday and were set for their biggest monthly decline since October 2008, as uncertainty in the Middle East gave way to expectations of U.S. interest rate hikes to tame elevated inflation, Reuters reported.
Spot gold declined 1.5% to $3,956.92 per ounce, shedding 12.7% so far in the month in what would be its fourth straight monthly fall. U.S. gold futures for August delivery lost 1.7% to $3,969.30.
Bullion was also set for its first quarterly fall since 2024 and the largest since the June quarter of 2013, as the Iran war sent energy prices sharply higher, stoking inflation fears and bets for interest rate hikes.
“You have high inflation, high interest rate expectations, and a strong dollar, and that’s overriding all other bullish factors that are typically associated with a gold rally,” said Edward Meir, an analyst at Marex.
While gold is traditionally seen as a hedge against inflation, it loses its appeal in a high-interest-rate environment.
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