Gold jewelry at a store in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Vietnam gold prices fell Monday morning as global bullion rates dropped to a near one-week low.
Saigon Jewelry Company gold bar price slid 0.52% to VND171.5 million (US$6,510.64) per tael. Other sellers lowered their rates accordingly.
Gold ring price decreased by roughly the same rate to VND171.2 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold prices fell to a near one-week low on Monday, pressured by a stronger dollar, while a surge in oil prices following failed U.S.-Iran peace talks fueled inflation worries and dampened expectations for Federal Reserve interest rate cuts this year, Reuters reported.
Spot gold was down 0.6% at $4,718.98 per ounce after hitting its lowest level since April 7 earlier in the session. U.S. gold futures for June delivery fell 1% to $4,742.
“Ceasefire optimism has unwound following the failure of the peace talks, and the resulting push higher by the dollar and oil prices has put gold on the back foot again,” said Tim Waterer, chief market analyst, KCM Trade.
“As soon as oil prices push back above $100, attention quickly turns to potential central bank rate hikes to curb inflation, and it is this interest rate outlook which is undermining gold’s performance.”
Spot gold has fallen more than 11% since the U.S.-Israeli war on Iran began on Feb. 28. While inflation typically boosts gold’s appeal as a hedge, elevated interest rates weigh on the non-yielding metal. A stronger dollar makes greenback-priced bullion more expensive for other currency holders.
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