Gold jewelry at a store in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Vietnam gold prices edged higher Monday morning despite a slide in global bullion rates.
Saigon Jewelry Company gold bar price started the week up 0.14% at VND146.2 million (US$5,635) per tael.
Gold ring price saw a similar increase to VND145.7 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally gold prices slipped on Monday as a surge in oil prices stoked inflation concerns, boosting expectations that the U.S. Federal Reserve may raise interest rates at its policy meeting this week, Reuters reported.
Spot gold slipped 0.3% to $4,334.31 per ounce. U.S. gold futures dropped 0.8% to $4,375.00.
“Gold isn’t finding conditions to its liking. Rising energy prices plus climbing rate expectations ahead of the Fed and BoJ meetings are delivering a clear yield headwind for gold,” said Tim Waterer, chief market analyst at KCM Trade.
Data last week showed U.S. consumer prices accelerated in August while a key measure of underlying inflation posted its largest increase in four months, bolstering expectations that the Fed will raise interest rates.
Although gold is typically seen as an inflation hedge, higher interest rates tend to reduce the appeal of non-yielding bullion.