Vietnam’s gold prices dropped further on Monday afternoon following a nearly 1% decline earlier in the session.
Saigon Jewelry Company gold bar price fell another 0.42% from the morning to VND165.2 million (US$6,276.26) per tael, extending losses to 1.37% for the day.
Local bullion rates are around VND17 million per tael higher than global prices.
Gold ring price went down by roughly the same rates to VND164.7 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold fell 1% on Monday as President Donald Trump’s rejection of Iran’s latest peace offer to end the war in the Middle East stoked fears of inflation and prolonged high interest rates.
Spot gold fell 1% at $4,667.99 per ounce after a roughly 2% rise last week. U.S. gold futures for June delivery lost 1.1% at $4,677.80.
“Inflation risks still weigh heavy on the market’s collective mind, as attempts to end the Middle East conflict reached an impasse after the U.S. and Iran rejected each other’s peace proposals,” said Han Tan, chief market analyst at Bybit, as quoted by Reuters.
A person holds gold bars at a store in Ho Chi Minh City. Photo by Read/Quynh Tran |
The setback could keep inflation risks and expectations of higher interest rates elevated, putting pressure on non-yielding bullion, which has dropped more than 11% since the war began in late February.
“Gold may face greater downward pressure should tomorrow’s U.S. CPI prints come in hotter than expected, in turn forcing the Fed to keep its benchmark rates elevated for a longer period of time,” Tan said.
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