Vietnam gold prices fell Tuesday morning to the lowest since August 4, following a dip of the precious metal on global markets.
Saigon Jewelry Company gold bar dropped 0.63% to VND141.5 million (US$5,448.80) per tael. A tael equals 37.5 grams or 1.2 ounces.
Gold ring declined 0.91% to VND142.2 million per tael. Gold prices in Vietnam have fallen 7.40% so far this year.
Globally gold was steady after a 4% plunge on Monday, as rising oil prices stoked inflation concerns and bolstered bets on tighter monetary policy, while a higher dollar and Treasury yields created further headwinds for the metal, Reuters reported.
Spot gold was up 0.61% to $4,138.90 per ounce at the time of publishing.
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Gold jewelry on display in a shop in Hanoi. Photo by VnExpress/ Hoang Giang |
Oil rose about 3% after U.S. President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz. Higher oil prices can feed into inflation, forcing central banks to adopt a higher-for-longer rate stance.
Although gold is traditionally considered an inflation hedge, higher rates dent its appeal as investors prefer yield-bearing assets.
