Vietnam’s gold prices declined Friday morning as global bullion rates fell for the fourth straight session.
Saigon Jewelry Company gold bar price slid 0.6% to VND164 million (US$6,221.31) per tael.
Local bullion rates have decreased by 2% this week but are still up 7.3% from the start of the year.
Gold ring price also went down 0.6% to VND163.8 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold fell to a more than one-week low on Friday and was set for a weekly decline as higher energy prices fuelled inflation fears and prolonged higher interest rates, while investors focused on the meeting between U.S. President Donald Trump and Chinese President Xi Jinping, Reuters reported.
Spot gold extended losses for the fourth straight session and was down 0.8% at $4,613.19 per ounce, its lowest level since May 6. Bullion was down 2.1% so far this week. U.S. gold futures for June delivery lost 1.4% to $4,619.
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Gold jewelry at a store in Ho Chi Minh City. Photo by VnExpress/Quynh Tran |
“Gold is getting hit from all sides – rising oil has brought inflation back to the forefront, pushing yields higher and the dollar stronger, leaving the yellow metal as the unfortunate victim of the market’s renewed rate-cut skepticism,” said Tim Waterer, chief market analyst at KCM Trade.
Gold has fallen about 13% since the U.S.-Iran conflict began in late February, amid elevated energy prices that have sparked inflation concerns and the prospect of higher U.S. interest rates.
While gold is seen as a hedge against inflation, high rates tend to weigh on the non-yielding asset.
