Gold jewelry at a store in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Vietnam gold prices rose Wednesday morning as global bullion rates went up.
Saigon Jewelry Company gold bar price jumped 1.32% to VND177.2 million (US$6,727.66) per tael. Local bullion rates are around VND29 million per tael higher than global prices.
Gold ring price similarly increased to VND177 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold prices edged higher on Wednesday to their highest in nearly two weeks, supported by a weaker dollar as U.S. President Donald Trump said the war with Iran could soon wind down, Reuters reported.
Spot gold rose 0.4% to $4,685.79 per ounce, having hit its highest level since March 20 at $4,723.21 earlier in the day. U.S. gold futures for April delivery gained 0.8% to $4,713.40.
The U.S. dollar fell, making greenback-denominated commodities more affordable for holders of other currencies.
“Talks that the U.S. might wrap up the war in two to three weeks even if the Strait (of Hormuz) is not reopened reinvigorated the U.S. equity markets and pulled gold higher along with it,” said Marex analyst Edward Meir.
“However, the upside (to gold prices) is being limited due to the fact that interest rates can move higher if inflationary expectations reignite.”
Gold tends to thrive in a low-interest-rate environment as it is a non-yielding asset.
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