Vietnam’s gold prices slipped Wednesday morning while global bullion rates held mostly steady.
Saigon Jewelry Company gold bar price dropped 0.9% to VND166 million (US$6,298.97) per tael.
Gold ring price similarly fell to VND165.5 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold was largely steady in choppy trade on Wednesday as investors awaited U.S. Federal Reserve Chair Jerome Powell’s comments to gauge the impact of the Iran war on the economy amid stalled peace talks, Reuters reported.
Spot gold was up 0.1% at $4,597.07 per ounce after falling to its lowest level since April 2 in the previous session. U.S. gold futures for June delivery were steady at $4,610.20.
Gold bars at a store in Ho Chi Minh City. Photo by VnExpress/Quynh Tran |
Brent crude oil held above $110 a barrel on reports that the U.S. will extend its blockade of Iranian ports.
Higher crude prices add to inflationary pressures, increasing the likelihood of higher interest rates. While gold is traditionally seen as a hedge against inflation, high interest rates weigh on its appeal as a non-yielding asset.
Gold remained steady “as markets look ahead to the FOMC (Federal Open Market Committee) meeting,” said Ilya Spivak, head of global macro at Tastylive.
“Much of the market’s resilience since last April’s tariff-driven panic has been built on the assumption that the Fed is ready to step in if conditions deteriorate. If it signals a high bar for such action, gold may extend lower.”
Comments are closed.