Gold bars at a store in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Vietnam gold prices dipped Friday morning as global bullion rate head for its first weekly loss in over a month.
Saigon Jewelry Company gold bar price slid 0.49% to VND183.8 million (US$7,004.45) per tael. Other sellers also slashed their rates.
Gold ring price similarly slipped to VND183.5 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, spot gold was steady at $5,078.88 an ounce on Friday, though it was headed for a 3.7% weekly fall as rising yields and a stronger dollar eclipsed the yellow metal’s safe-haven appeal, Reuters reported.
This would mark its first weekly decline in more than a month, fueled by a stronger U.S. dollar and inflationary risks linked to the ongoing war in the Middle East, according to Bloomberg.
The escalation has kept energy-supply worries elevated, supporting oil prices, fueling inflation concerns and dimming prospects for interest rate cuts.
Gold is often viewed as a hedge against long-term inflation, but tends to perform better when interest rates fall.
“The market is looking at higher oil prices and the potential for inflation, while higher Treasury yields usually aren’t great for gold,” said Bart Melek, global head of commodity strategy at TD Securities.
However, gold still has supportive fundamentals, Melek said, as “we’re going to at some point start seeing evidence of significantly higher deficit in the U.S. … and a massive amount of uncertainty.”
