Gold jewelry at a store in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Vietnam gold prices fell Wednesday afternoon following a 1.32% jump earlier in the session.
Saigon Jewelry Company gold bar price dropped 0.28% from the morning to VND176.7 million (US$6,709.71) per tael, trimming daily gains to 1.03%.
The gap between global and local bullion rates narrowed to VND26 million per tael.
Gold ring price similarly slid to VND176.5 million per tael, also up 1.03% from Tuesday. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold continued its three-day rally amid signs that the Middle East conflict could be easing, with traders turning attention from interest-rate hikes to the longer-term risk of economic downturn.
Spot gold rose 1% to $4,717.82 per ounce, its highest level since March 20. U.S. gold futures for April delivery gained 1.4% to $4,744.30, Reuters reported.
Gold fell more than 11% in March in its steepest monthly decline since October 2008 as elevated oil prices fuelled inflation concerns and bets of a hawkish monetary policy response.
“Gold’s safe‑haven appeal tends to re‑emerge when the narrative shifts from inflation to growth risk,” said Yuxuan Tang, Asia head of rates and FX strategy at JPMorgan Private Bank, as quoted by Bloomberg.
“We hold a high conviction that the Federal Reserve has limited bandwidth to raise rates this cycle” and will instead focus on the strained labor market, she added.
While gold is often used as a hedge against inflation and geopolitical risks, high interest rates make the non-yielding bullion less attractive among investors.
