Vietnam Gold Prices Plummet as World Gold Soars Past $4,500

On August 20th, gold prices showed a paradoxical trend in Vietnam. While domestic gold prices plummeted across various exchanges, world gold prices rose by over 4% to surpass $4,500 per ounce.

The SJC gold price decreased by 1.6 million VND/ounce on August 20th compared to the previous day. This significant drop occurred at a time when global gold prices were increasing sharply, altering the relationship between domestic and international gold prices.

The US Treasury's decision to double its long-term bond repurchase programs from $2 billion to at least $4 billion supported market liquidity, causing bond yields to fall and the US dollar to weaken. This environment is favorable for gold as it does not pay interest, leading spot gold to rise 3.6% on August 19th.

The Fed remains hawkish, with some members suggesting that current fiscal conditions might not be sufficient to bring inflation back to the 2% target. However, despite this, gold prices continue to rise.