A person holds gold jewelry at a store in Ho Chi Minh City. Photo by Read/Quynh Tran
Vietnam gold prices slipped Monday morning amid a drop in global bullion rates.
Saigon Jewelry Company gold bar price started the week 0.4% lower at VND147 million (US$5,640.83) per tael. A tael equals 37.5 grams or 1.2 ounces.
Gold ring price decreased by roughly the same rate to VND146.5 million per tael.
Globally, gold prices nudged lower on Monday as strong U.S. jobs data reinforced expectations for higher interest rates, while market participants awaited key U.S. inflation prints due later this week for further clarity on the Federal Reserve’s policy path, Reuters reported.
Spot gold was down 0.5% at $4,405.47 per ounce. U.S. gold futures for December delivery were down 0.5% at $4,452.20.
“The jobs number delivered a clear upside surprise and put some pressure on the metal, but it wasn’t a complete slam dunk for a September rate hike. The real missing piece of the puzzle arrives this week with U.S. CPI,” said Tim Waterer, chief market analyst at KCM Trade. “A strong inflation print would reinforce expectations of a Fed hike, lift yields further and weigh more heavily on gold.”
While gold is typically viewed as an inflation hedge, higher interest rates tend to weigh on the appeal of non-yielding bullion.