Vietnam Gold Prices Hit 5-Week Low Amid Global Rate Hike Expectations

Gold prices in Vietnam have hit their lowest point in five weeks, according to recent data. The Saigon Jewelry Company's gold bar price dropped by 0.76% to VND144.4 million (US$5,554.37) per tael on Thursday. A tael is equivalent to 37.5 grams or 1.2 ounces.

The decline in Vietnam's gold prices follows a global trend. Globally, gold prices remained relatively steady, decreasing by just 0.03% to $4,284.70 per ounce on the same day. However, experts attribute this stability to hawkish signals from Federal Reserve policymakers, which have strengthened rate hike expectations and powered the U.S. dollar to two-month highs.

Peter Grant, vice president and senior metals strategist at Zaner Metals, notes that gold is being pressured by the higher dollar. He attributes this trend to post-FOMC Fed speak, which has been fairly hawkish. This has led to market expectations of at least one more rate hike before the end of the year, weighing on non-yielding bullion.