Gold bars at a store in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Vietnam gold prices fell Wednesday morning following an overnight drop in global bullion rates.
Saigon Jewelry Company gold bar price dropped 2.13% to VND184.2 million (US$7,023.83) per tael. Other sellers similarly lowered their rates.
Gold ring price declined by roughly the same rate to VND183.9 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold fell about 4.5% overnight before steadying early in the Asia session at $5,128 on Wednesday as traders were cashing out of winning bets to cover losses elsewhere in a volatile week, Reuters reported.
A flight to safety lifted the dollar index by 0.5% on Tuesday, taking it to a more than three-month peak.
Gold, typically viewed as a safe haven during periods of uncertainty and a long-term hedge against inflation, struggled under the weight of dollar strength.
“What is happening is a classic response to an event that has a lot of uncertainty,” said Michael Arone, chief investment strategist at State Street Investment Management in Boston.
The decline in gold prices showed the indiscriminate nature of the selling, Arone said.
“Oil, and the dollar, are the only two things that people want to own right now,” he said.
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