Gold rings seen in a store in Hanoi. Photo by VnExpress/Giang Huy
Vietnam gold prices plunged Saturday morning, extending its dip this week, as global rates slipped amid a stronger U.S. dollar.
Saigon Jewelry Company gold bar fell 2.9% to VND171 million (US$6,498.94) per tael. A tael equals 37.5 grams or 1.2 ounces.
Gold ring prices fell 2.9% to VND170.7 million per tael. Gold prices in Vietnam have risen 11.9% so far this year but lost 6.6% this week alone. Prices now hover around the lowest since Feb. 2.
Globally gold prices fell by 1.8% on Friday as the dollar strengthened on a report that the United States will deploy extra troops in the Middle East, fanning concerns of higher oil prices, inflation, and with it, elevated interest rates, Reuters reported.
Spot gold fell 1.8% to $4,563.64 per ounce rising 1% earlier. U.S. gold futures for April delivery were 0.7% lower at $4,574.90.
A stronger dollar makes dollar-priced bullion less attractive to holders of other currencies.
The U.S.-Israeli strike on Iran has spilled across the Middle East and hit the global economy since the two countries launched a joint attack on February 28.
Iran’s prolonged blockade of the Strait of Hormuz could keep energy prices elevated and fuel inflation.
“Gold and silver are being dragged lower as markets climb the usual wall of worry ahead of the weekend,” said independent metals trader Tai Wong, adding: “Metals are especially wobbly after this week’s aggressive drawdown on rate hike fears. It should consolidate soon but it will be a bumpy ride.”
