Gold bars at a store in Ho Chi Minh City. Photo by Read/Quynh Tran
Vietnam gold prices climbed Wednesday morning as global bullion rates rose to a near three-week high.
Saigon Jewelry Company gold bar price gained 1.74% to VND175.5 million (US$6,666.56) per tael. Other sellers also quoted the same rate.
Local bullion prices are around VND24 million per tael higher than global rates.
Gold ring price similarly increased to VND175 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold prices climbed to a near three-week high on Wednesday as markets reassessed near-term risks after U.S. President Donald Trump agreed to suspend bombing and attacks on Iran for two weeks, easing fears of energy-driven inflation, Reuters reported.
Spot gold was up 2.3% at $4,812.49 per ounce. Earlier in the session, bullion rose more than 3% to its highest level since March 19. U.S. gold futures for June delivery gained 3.4% to $4,841.60.
“This is a knee-jerk relief rally and it remains to be seen if Iran complies. For gold, the 200 day-moving-average at $4,930 and then $5,000 will be key hurdles,” independent metals trader Tai Wong said.
Gold, which started the year on a strong note, has fallen more than 8% since the Iran war erupted on Feb. 28.
Rising energy prices could fuel inflation and complicate central banks’ decision on interest rates. While gold is often seen as an inflation hedge and a safe-haven asset during uncertain times, its appeal tends to weaken in a high-interest-rate environment as it offers no yield.
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