On Tuesday morning, gold prices in Vietnam experienced an increase, despite global bullion rates experiencing their sharpest monthly fall in nearly two decades. The Saigon Jewelry Company reflected this trend with its gold bar prices ascending 0.63% to VND174.9 million (US$6,640.34) per tael. This price adjustment was echoed by other sellers in the local market.
Despite a 6.47% decrease this month, local bullion rates have still gained an impressive 14.5% since the beginning of the year.
The price of gold rings also experienced a similar surge, reaching a price of VND174.7 million per tael. It’s important to note that a tael is equivalent to 37.5 grams or 1.2 ounces.
On the global stage, gold prices experienced an increase on Tuesday. This rise was fueled by the optimism of a de-escalation in the Middle East conflict. However, gold is also facing its worst month in over 17 years due to increased energy prices. These circumstances have diminished hopes for a U.S. interest rate cut within this year.
Spot gold saw an increase of 1.5%, reaching $4,578.89 per ounce. Similarly, U.S. gold futures for April delivery experienced a 1.2% rise, leveling at $4,611.30.
Despite these positive changes, bullion has experienced a 13% decrease this month. This puts it on track for its most significant drop since October 2008, largely due to a stronger dollar and dwindling expectations of a U.S. interest rate cut within this year. Despite these challenges, prices remain up by approximately 5% for the quarter.
The dollar experienced a drop, making commodities priced in the greenback more affordable for holders of other currencies.
A notable factor influencing gold prices was an announcement from the U.S. President, Donald Trump, stating his willingness to end the U.S. military campaign against Iran. This news triggered a positive response from the financial markets and saw gold prices bounce in the early Asia-Pacific trade, according to Ilya Spivak, the head of global macro at Tastylive.
What sparked the increase in gold prices in Vietnam?
The rise in gold prices in Vietnam was primarily due to optimism about a de-escalation in the Middle East conflict and an announcement from the U.S. President about his willingness to end the military campaign against Iran.
What factors have contributed to the global drop in bullion rates this month?
The steep drop in global bullion rates has been largely due to a stronger dollar and diminished expectations of a U.S. interest rate cut within this year.
How has the dollar’s decrease impacted the commodities market?
As the dollar has fallen, commodities priced in the greenback have become more affordable for holders of other currencies, which can stimulate demand.
