The cost of gold took a significant plunge in Vietnam on Tuesday afternoon in line with a global downtrend. Saigon Jewelry Company, for example, saw a decrease of 1.02% in the price of their gold bars, which fell to VND155.6 million (US$5,908.47) per tael.
Simultaneously, the price of a gold ring saw a 1.1% drop, landing at VND152.7 million per tael. For reference, a tael is equivalent to 37.5 grams or 1.2 ounces.
Despite this recent tumble, bullion prices in Vietnam have seen an impressive increase of 85% since the start of the year.
The decline in Vietnam’s gold prices also mirrors a worldwide trend. On Tuesday, gold prices slipped internationally as investors adopted a cautious stance in anticipation of crucial U.S. employment and inflation data. This information is expected to provide indications for the Federal Reserve’s policy as we head into the new year.
In particular, spot gold decreased by 0.3% to $4,290.33 per ounce. However, despite this decline, bullion has experienced a strong rally of 64% year-to-date, breaking multiple records along the way.
According to Ilya Spivak, the head of global macro at Tastylive, the market is currently weighing whether there’s sufficient conviction to push prices higher, or if this is the point where momentum begins to wane.
In other commodities, spot silver also experienced a decline, decreasing by 1.4% to $63.03 an ounce. This comes after it reached a record high of $64.65 on Friday.
What caused the decline in gold prices in Vietnam?
The decline in gold prices in Vietnam is primarily due to a global decrease in gold prices.
What is the impact of U.S. employment and inflation data on global gold prices?
U.S. employment and inflation data are key indicators for the Federal Reserve’s policy. As such, they can influence investor sentiment and cause shifts in global gold prices.
How has the price of bullion changed since the start of the year?
Despite the recent downturn, bullion prices in Vietnam have increased by 85% since the beginning of the year. Similarly, globally, bullion has rallied 64% year-to-date.
