On Monday afternoon, there was a further decline in the gold prices in Vietnam, following a nearly 1% decrease earlier in the day. The gold bar prices offered by Saigon Jewelry Company experienced a drop of an additional 0.42% from the morning’s price, settling at VND165.2 million (US$6,276.26) per tael, marking a total loss of 1.37% for the day.
Local bullion prices currently stand at around VND17 million per tael higher than the global gold prices.
Similarly, the cost of gold rings experienced a decrease in price, dropping at roughly the same rate and settling at VND164.7 million per tael. In Vietnam, a tael is equivalent to 37.5 grams or 1.2 ounces.
On a global scale, gold prices experienced a 1% decrease on Monday. This was triggered by President Donald Trump’s rejection of Iran’s recent peace proposal, aimed at ending the ongoing conflict in the Middle East. This rejection has led to a heightened fear of inflation and a prolonged period of high interest rates.
Spot gold saw a decrease of 1% to $4,667.99 per ounce, following a rise of approximately 2% during the previous week. U.S. gold futures for June delivery experienced a loss of 1.1% to stand at $4,677.80.
The failure to reach an agreement to end the Middle East conflict has led to sustained inflation risks and expectations of high-interest rates. This in turn has put pressure on the non-yielding bullion, which has seen a drop of over 11% since the inception of the war in late February.
According to Han Tan, chief market analyst at Bybit, there could be more downward pressure on gold prices if the U.S. Consumer Price Index (CPI) prints prove to be hotter than anticipated tomorrow. This could force the Federal Reserve to maintain high benchmark rates for an extended period.
**What is the current price of gold bars offered by Saigon Jewelry Company?**
The current price per tael is VND165.2 million (US$6,276.26).
**How much has the price of non-yielding bullion dropped since the start of the war in the Middle East?**
The price of non-yielding bullion has dropped more than 11% since the war began in late February.
**How might the U.S. Consumer Price Index impact the price of gold?**
If the U.S. Consumer Price Index prints come in hotter than expected, it could result in more downward pressure on gold prices, with the Federal Reserve being forced to maintain high benchmark rates for a longer period.
