Gold jewelry at a store in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Vietnam gold prices bounced back around Friday noon following a drop earlier in the session.
Saigon Jewelry Company gold bar price gained 0.68% to VND176.1 million (US$6,692.13) per tael, erasing a 0.34% dip in the morning.
Gold ring price rose 0.69% to VND175.8 million per tael after slipping 0.34% earlier. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold prices rose on Friday on technical buying, but were headed for a third consecutive weekly decline, pressured by a firm U.S. dollar and as a hawkish U.S. Federal Reserve dampened hopes for near-term interest rate cuts, Reuters reported.
Spot gold rose 1.5% to $4,717.49 per ounce, rebounding from a near two-month low hit in the previous session. U.S. gold futures for April delivery rose 2.4% to $4,716.80.
However, bullion has lost over 6% so far this week. Spot gold has fallen more than 10% since the U.S.-Israeli strike on Iran on Feb. 28.
The dollar has emerged as one of the clearest “safe-haven” winners, strengthening over 2% so far this month. Meanwhile, the Fed kept rates steady on Wednesday, echoing major developed market central banks, and indicated that inflation could rise.
Gold is considered an inflation hedge, but high interest rates tamp down on demand as yield-bearing assets turn more attractive, while a stronger dollar makes the bullion more expensive for holders of other currencies.
“Gold held some important technical supports in the weekly time frame and gold may see a recovery to the level where it broke down, around $4,800,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.
