Vietnam Gold Prices Plunge to Eight-Month Low Amid Dollar and Oil Price Surge
Gold prices in Vietnam have been trending downward since October, and yesterday they hit an eight-month low. The Saigon Jewelry Company's gold bar dropped by 2.64% to VND140 million (US$5,318.74) per tael, which is equivalent to 37.5 grams or 1.2 ounces.
A gold ring also fell by the same percentage to VND140 million per tael. Overall, Vietnam's gold prices have declined by 8% this year. Globally, gold prices have been affected by rising dollar and oil prices due to renewed hostilities between the US and Iran.
The dollar's rise has made greenback-priced bullion more expensive for holders of other currencies. This has led to concerns about inflation and interest rate hikes. Ilya Spivak, head of global macro at Tastylive, said 'The driver really is the shift in Federal Reserve policy expectations, the rise in yields, and the rise in the dollar.'
Spot gold lost 1.8% to $4,187.59 per ounce, its lowest level since March 23. U.S. gold futures for August delivery were down 1.7% at $4,213.40.