Gold prices in Vietnam saw a significant increase on Wednesday morning, corresponding with a rise in global bullion rates. The price of a gold bar from the Saigon Jewelry Company witnessed a 2.82% increase, reaching VND175 million (US$6,642.88) per tael. Other vendors adjusted their prices similarly in line with this increase.
In Vietnam, local gold prices are approximately VND29 million per tael higher than global rates, highlighting the uniqueness of the Vietnamese market. The price of gold rings has also risen by approximately the same rate, reaching VND174.8 million per tael. It should be noted that a tael is equivalent to 37.5 grams or 1.2 ounces.
On Wednesday, the global gold market also saw an increase of over 2%. This increase was driven by a softer dollar value and a decrease in oil prices, which alleviated concerns surrounding high inflation and increased global interest rates. Spot gold experienced a 2.5% increase to $4,587.09 per ounce, while U.S. gold futures for April delivery saw a 4.2% gain to $4,586.10.
The easing of the dollar has made gold priced in greenbacks cheaper for those holding other currencies. Christopher Wong, a strategist at OCBC, stated that the easing of the dollar strength has allowed for the reassertion of safe-haven demand. He further emphasized that gold has not lost its appeal as a secure investment, contrary to what some may believe.
Wong also suggested that the value of gold will likely remain sensitive to the Federal Reserve’s policy path expectations, the value of the USD, and geopolitical developments in the near term. However, he also postulates that the recent rebound suggests that any declines in the value of gold may continue to find support unless real yields shift significantly higher.
What caused the rise in gold prices in Vietnam?
The rise in gold prices in Vietnam is primarily due to the surge in global bullion rates.
How does the value of the USD affect gold prices?
The value of the USD has a significant impact on gold prices. When the USD weakens, gold prices often increase as gold becomes more affordable for those holding other currencies.
Is gold still considered a safe investment?
Yes, according to Christopher Wong, a strategist at OCBC, gold has not lost its safe-haven appeal and remains a secure investment option.
