Gold jewelry on display at a shop in Hanoi. Photo by VnExpress/Giang Huy
Vietnam gold prices plummeted on Monday morning as global bullion rates eased over 1%.
Saigon Jewelry Company gold bar price slipped 1.24% to VND119.5 million (US$4,597.04) per tael.
Gold ring price dropped by 1.29% to VND115 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Gold bar prices have increased by 40.6% in the year to date. The State Bank of Vietnam earlier this month said it will consider intervening in the gold market when necessary. It will also continue to address the huge gap between domestic and global gold prices, according to Nguoi Lao Dong newspaper.
Globally, gold prices dropped more than 1% on Monday as easing U.S.-China trade tensions boosted investors’ risk appetite and dented demand for safe-haven assets such as bullion, while a stronger dollar also piled on the pressure, Reuters reported.
Spot gold was down 1.4% at $3,272.89 an ounce. Bullion hit a record high of $3,500.05 on April 22. U.S. gold futures eased 0.4% to $3,283.70.
The U.S. dollar rose against a basket of currencies, making bullion more expensive for overseas buyers.
“It’s probably fair to say that financial markets and risk-assets in particular are feeling slightly better about the tariff picture now compared to the frantic first week in April,” said Tim Waterer, chief market analyst at KCM Trade.
“Comments last week from the White House have fueled optimism that a U.S.-China trade deal may eventuate, which has caused safe haven demand for assets such as gold to subside.”
Gold, traditionally seen as a hedge against economic and political uncertainties, thrives in a low interest rate environment.
