Vietnam gold prices slid Friday morning while global bullion rates were headed for a fourth straight week of gains.
Saigon Jewelry Company gold bar price dipped 0.12% to VND171 million (US$6,493.64) per tael. It has dropped 0.81% so far this week.
Gold ring price also fell 0.12% to VND170.5 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold held largely steady on Friday and was on track for a fourth straight weekly gain, as hopes for a U.S.-Iran peace deal eased fears of higher inflation and elevated interest rates, Reuters reported.
Spot gold was unchanged at 4,789.67 per ounce, but up 0.9% for the week. U.S. gold futures for June were steady at $4,809.30.
Gold bars at a store in Ho Chi Minh City. Photo by Read/Quynh Tran |
The U.S. dollar firmed after hitting a six-week low in the last session, but was headed for a second weekly drop. A weaker dollar makes greenback-denominated commodities more affordable for holders of other currencies. Oil prices fell, easing fears of higher inflation on optimism that the Iran war could be nearing an end.
Concerns that higher energy prices could stoke inflation and keep global interest rates higher for longer have driven down gold prices by more than 8% since the Iran war began in late February.
“While we expect further downside pressure (on gold) as the year progresses, ongoing geopolitical risks are likely to keep prices supported above a firm floor of $3,500/oz, underpinned by gold’s safe-haven characteristics,” BMI, a unit of FitchSolutions, said in a note.
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