Vietnam gold prices fell Tuesday morning, following a tumble of the precious metal in the previous session.
Saigon Jewelry Company gold bar dropped 0.21% to VND145.3 million (US$5,586.10) per tael. A tael equals 37.5 grams or 1.2 ounces.
Gold ring declined 0.2% to VND146.5 million per tael. Gold prices have fallen 4.91% so far this year.
Globally gold went up 0.10% to $4,302.70 per ounce, following a 1.15% plunge on Monday as a rally in oil prices and stronger-than-expected inflation data bolstered expectations of a rate hike at the U.S. Federal Reserve’s policy meeting this week, Reuters reported.
Traders are pricing in about a 93% chance of a rate hike at the Federal Reserve’s policy meeting, according to the CME FedWatch Tool.
Although gold is typically seen as an inflation hedge, higher interest rates tend to reduce the appeal of the non-yielding bullion.
