A person touches gold jewelry at a shop in Ho Chi Minh City. Photo by VnExpress/Thanh Tung
Vietnam gold prices fell Tuesday morning to the lowest since July 1, driven by a dip in global rates amid heightened Middle East tension.
Saigon Jewelry Company gold bar dropped 0.88% to VND147.1 million (US$5,604.76) per tael. A tael equals 37.5 grams or 1.2 ounces.
Gold ring declined 0.54% to VND146 million per tael. Gold prices have fallen 3.7% so far this year.
Globally gold prices inched up, following a 3% plunge on Monday, after U.S. President Donald Trump said he was reinstating a naval blockade on Iran, boosting oil markets, reigniting inflation concerns and raising prospects of higher-for-longer U.S. interest rates, Reuters reported. Spot gold went up 0.28% to $4,011.10 per ounce.
“Oil prices are rallying because of the Middle East conflict, and there is potential for policy tightening from the Federal Reserve. This is bad news for zero-yielding assets like gold,” said Fawad Razaqzada, market analyst at Forex.com.
“If oil prices continue to push higher, gold prices could break down and potentially head towards the $3,800 level initially and possibly to $3,500 over time if the selling pressure accelerates,” he added.
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