Gold jewelry on display at a shop in Ho Chi Minh City. Photo by Read/Thanh Tung
Vietnam’s gold prices fell on Wednesday despite a rebound in global bullion rates.
Saigon Gold Jewelry Company gold bar price dropped 0.99% to VND139.5 million (US$5,441.36) per tael.
The rate is roughly VND14 million per tael higher than global prices.
Gold ring price saw a similar decline to VND139.3 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold prices edged higher on Wednesday after a nearly 3% slide in the previous session, but gains were limited as stronger-than-expected U.S. inflation data cemented expectations of a Federal Reserve interest rate hike next month, weighing on bullion, Reuters reported.
Spot gold was up 0.3% at $4,044.56 per ounce after falling nearly 3% in the previous session. US gold futures for December delivery gained 0.6% to $4,052.50.
“We’re seeing a technical retracement against Tuesday’s heavy losses, as bears book profits and wait for the next catalyst. Hot CPI and hawkish Fed comments have revived tightening expectations,” said Matt Simpson, a senior market analyst at StoneX.
Gold is typically seen as an inflation hedge, but higher interest rates increase the opportunity cost of holding non-yielding bullion.