A person holds gold bars in Hanoi. Photo by Read/Giang Huy
Vietnam gold prices fell Tuesday morning, hovering around the lowest in 4 months, amid a decrease in global rates as rising tension in the Middle East stirred up concerns about inflation.
Saigon Jewelry Company gold bar dropped 0.31% to VND161.5 million (US$6,128.46) per tael. A tael equals 37.5 grams or 1.2 ounces.
Gold ring declined 0.31% to VND160 million per tael. Gold prices in Vietnam have risen 5.7% so far this year.
Globally gold fell on Tuesday as fresh U.S. attacks in Iran pushed oil prices higher, fueling concerns around inflation and higher-for-longer interest rates, Reuters reported.
Spot gold was down 0.7% at $4,537.54 per ounce. U.S. gold futures for June delivery gained 0.3% to $4,538.50.
“Even though we have a peace deal that is being done and dusted between the U.S. and Iran, the damage that has been done to Middle East oil production facilities could actually prevent a rapid normalization of oil flows flowing into the rest of the world from the Middle East,” said Kelvin Wong, a senior market analyst at OANDA.
“The market has started to price in this situation, showing very high odds of an interest rate hike to come in this year.”
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