Gold prices in Vietnam continued on a downward trend on Wednesday morning, reaching the lowest point since October 5. The Saigon Jewelry Company reported that gold bars fell by 2.64%, now valued at VND140 million (US$5,318.74) per tael. In Vietnam, a tael is equivalent to 37.5 grams or 1.2 ounces.
The price of gold rings also experienced the same decline, priced at VND140 million per tael. So far this year, gold prices in Vietnam have decreased by 8%.
On a global scale, gold fell by over 1% on Wednesday, plunging to an 11-week low. This drop in value could be attributed to the rising dollar and oil prices, amid renewed tensions between the United States and Iran. These factors fueled concerns about potential inflation and possible interest rate hikes.
Spot gold suffered a 1.8% loss, falling to $4,187.59 per ounce, the lowest it has been since March 23. Meanwhile, U.S. gold futures for August delivery were down 1.7% at $4,213.40.
The rise of the dollar has made bullion priced in the greenback more costly for holders of other currencies. Additionally, the 1% increase in oil prices stoked inflation worries, solidifying the expectation that interest rates would remain high for an extended period.
Ilya Spivak, head of global macro at Tastylive, noted that the shift in Federal Reserve policy expectations, the rise in yields, and the increase in the dollar have all contributed to the decline in gold prices.
Why have gold prices in Vietnam decreased?
The decline in gold prices in Vietnam is part of a global trend, influenced by factors such as the rising dollar and oil prices, as well as geopolitical tensions.
What factors are influencing global gold prices?
Global gold prices are being affected by policy expectations from the Federal Reserve, rising yields, and the strengthening of the dollar. Inflation worries and anticipated interest rate hikes also play a significant role.
How is the rise in oil prices related to gold prices?
The increase in oil prices can stoke inflation concerns. When inflation is expected to rise, interest rates typically follow suit. Higher interest rates can negatively impact gold prices because they increase the opportunity cost of holding non-yielding bullion.
