Gold jewelry seen in a shop in Hanoi. Photo by VnExpress/Giang Huy
Vietnam gold prices dropped slightly Tuesday afternoon as global rates dip amid reduced geopolitical tension.
Saigon Jewelry Company gold bar fell 0.17% to VND119.5 million (US$4,569.09) per tael.
Gold ring was steady at VND116.5 million per tael.
Vietnam gold prices have risen 41.9% since the beginning of the year.
Globally gold prices fell more than 1% to a near two-week low on Tuesday as risk appetite improved after a ceasefire came into effect to end a 12-day war between Iran and Israel, denting demand for safe-haven assets, Reuters reported.
Spot gold was down 1.4% at $3,319.84 an ounce, its lowest level since June 11.
“It seems like there’s a good bit of geopolitical risk that’s exiting the market here near term after, of course, we have signs of de-escalation between the U.S. and Iran,” said Ilya Spivak, head of global macro at Tastylive.
“The bias for gold prices is higher, but we might see a correction in the near term and an uptick in the dollar if Powell convinces markets that they’re not going to cut more than twice this year,” Spivak said.
Gold tends to thrive in a low-interest-rate environment.
