A person arranges gold jewelry at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Vietnam gold bar price fell by 0.46% to VND85.4 million per tael Monday morning as global rates dropped.
Gold ring price slid by 0.47% to VND84.4 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold prices fell for a second straight session on Monday, while investors prepared for U.S. economic data and comments from Federal Reserve officials this week for more clarity on the future direction of U.S. interest rates, Reuters reported.
Spot gold dropped 0.5% to $2,669.22 per ounce. U.S. gold futures fell 0.7% to $2,675.90.
“Gold prices were previously seen as a hedge against U.S. political risks, and a quicker-than-expected conclusion in the elections may be a trigger for some near-term unwinding, along with the firmer U.S. dollar,” said IG market strategist Yeap Jun Rong.
Last Friday, spot gold prices registered their worst week in more than five months as Donald Trump’s victory in the presidential election has raised the prospect of higher tariffs which could keep interest rates elevated.
“We may expect the Fed to be more cautious in its easing process ahead, which could cap gold prices,” Yeap said.
Bullion is considered a hedge against inflation but higher rates raise the opportunity cost of holding it.
