Gold rings seen in a jewelry shop in Hanoi. Photo by Read/Giang Huy
Vietnam gold prices fell Monday morning as global prices of the safe-haven metal are set to end the month 15% lower, the steepest monthly decline since October 2008.
Saigon Jewelry Company gold bar dropped 0.81% to VND171.4 million (US$6,509.70) per tael. A tael equals 37.5 grams or 1.2 ounces.
Gold ring declined 0.81% to VND171.2 million per tael. Gold prices in Vietnam have risen 12% so far this year.
Globally gold prices fell on Monday, as a surge in energy prices fuelled inflation worries and dampened expectations for U.S. Federal Reserve interest rate cuts this year, Reuters reported.
Spot gold fell 0.6% to $4,466.99 per ounce. U.S. gold futures for April delivery shed 0.6% to $4,496.30.
Gold has lost more than 15% so far this month, marking its steepest monthly decline since October 2008, as the U.S. dollar strengthened. The currency has gained more than 2% since the U.S.-Israeli war on Iran began on Feb. 28.
“The bigger macro picture behind gold’s underperformance is the huge shift in interest rate expectations… The USD has picked up on that, and as gold’s outlook was likewise rate-dependent, largely with expectations that the policy rate would fall under a new Federal Reserve chair, which has worked against gold,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.
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