A person holds gold bars in a jewelry shop in Hanoi. Photo by VnExpress/Ngoc Thanh
In a noteworthy turn of events, Vietnam’s gold prices dropped sharply on Saturday, marking their lowest point since June 12 as the global gold market experienced a significant pullback.Saigon Jewelry Company reported a 0.42% decline in the price of gold bars, now valued at VND119.2 million (approximately US$4,567.92) per tael. Likewise, gold rings saw a 0.43% reduction, now priced at VND116 million per tael.
Despite this recent dip, gold prices have soared by 42% since the start of the year. However, last Friday marked a crucial shift as gold fell by 2% globally, reaching a near one-month low. The decline followed a U.S.-China trade agreement that renewed risk appetite among investors, thus diminishing gold’s status as a safe haven.
Spot gold prices eased by 1.5% to $3,277.17 per ounce, after an earlier drop of 2% that marked its lowest level since May 29. This decline represents a continued downturn for bullion, which has experienced a 2.8% drop over the past two weeks.
“The waning geopolitical tensions have encouraged investors to take profits, driven by the increasingly optimistic outlook regarding relations with China and the evolving situation in the Middle East,” said Daniel Pavilonis, a senior market strategist at RJO Futures.
The recent U.S.-China trade agreement, aimed at speeding up the shipment of rare earth metals to the United States, has been positively received by markets, leading to a rally in global shares.
In the Middle East, the ceasefire agreement between Iran and Israel appears to be holding steady, despite a few minor incidents earlier on.
How much have gold prices fallen in Vietnam recently?
Vietnam’s gold prices dropped to their lowest level since June 12, with gold bars declining by 0.42% to VND119.2 million per tael.
What factors contributed to the global decline in gold prices?
A new trade agreement between the U.S. and China, which has increased investor risk appetite, along with easing geopolitical tensions, has decreased gold’s appeal as a safe-haven asset.
What is the overall trend for gold prices this year?
Despite the recent drop, gold prices have surged by 42% since the beginning of the year, reflecting a strong performance before recent market shifts.
