A person tries on gold jewelry in a shop in HCMC. Photo by VnExpress/Thanh Tung
Vietnam gold price plunged Saturday morning amid a steep fall of the precious metal on global markets.
Saigon Jewelry Company gold bar dropped 1.44% to VND151 million (US$5,730.56) per tael.
Gold ring fell by 1.45% to VND149 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Gold price in Vietnam has risen 79% since the beginning of the year.
Globally global spot gold prices dropped 2.9% to $4,080.70 per ounce on Friday on a broader market sell-off, sparked by hawkish remarks from U.S. Federal Reserve officials, dimming hopes for a December interest rate cut, Reuters reported.
“When margin calls and liquidations happen, traders close everything to free up margin… This is what partially explains why even gold is down in this risk off environment,” said Fawad Razaqzada, market analyst at City Index and FOREX.com, in a note.
Meanwhile, physical gold demand across major Asian markets was subdued this week. In other metals, spot silver edged down 2.8% to $50.84 per ounce but was on track for a weekly gain, up 5.2% so far.
