Gold rings for sale in a shop in Hanoi. Photo by VnExpress/Giang Huy
Vietnam gold price plunged Thursday afternoon despite bullion’s global gain, which was driven by a rate cut from the U.S. Federal Reserve.
Saigon Jewelry Company gold bar fell 1.01% to VND146.6 million (US$5,567.68) per tael.
Gold ring dropped 0.82% to VND145.1 million per tael. A tael equals 37.5 grams or 1.2 ounces. Bullion has risen 74% in Vietnam so far this year.
Globally prices of the precious metal rose, supported by dollar weakness and a Federal Reserve rate cut, while investors remained cautious about the outcome of a trade agreement between the presidents of the U.S. and China, Reuters reported.
Spot gold rose 0.9% to $3,964.09 per ounce. U.S. gold futures for December delivery slipped 0.6% to $3,977.10 per ounce.
The dollar index fell 0.2% after hitting a two-week high against its rivals on Wednesday, making gold more affordable for holders of other currencies.
“There’s no catalyst for the rally other than a bit of a technical bounce. A lot has gone against gold this week. The looming U.S.-China trade deal diminishes trade and geopolitics as a tailwind,” said Capital.com analyst Kyle Rodda.
Non-yielding gold thrives in a low-interest-rate environment and during economic uncertainties.
