Vietnamese Gold Prices Rise as Oil Falls Sharply

On August 5th, gold prices in Vietnam rose as oil prices fell sharply. According to Vietnam.vn, SJC gold prices increased by 500,000 VND/ounce compared to the end of trading on August 4th, with a listed price at 138-141 million VND/ounce (buying price - selling price). Meanwhile, some gold ring brands like Phu Quy and Doji listed selling prices that increased by 200,000-500,000 VND/ounce compared to noon on August 4th. The silver market also saw an increase in prices, with Phu Quy Group listing the price of silver bars at 2.204-2.272 million VND/ounce (buying price - selling price), a 1.11% increase compared to the end of August 4th.

The foreign exchange market saw the central exchange rate between VND and USD continue to rise, reaching 25,405 VND/dong, an increase of 25 VND compared to the morning of August 4th. However, the USD exchange rate at some commercial banks cooled down, with Vietcombank reducing the buying rate by 5 dong to 26,080 dong/USD for transfers and the selling rate to 26,460 dong/USD.

Global gold prices edged higher on August 4th as oil prices fell sharply, helping to ease inflation concerns and pressure from US bond yields. However, the prospect of the Federal Reserve (Fed) continuing to raise interest rates remains a limiting factor in the precious metal's recovery. According to Jefferies, gold prices have fallen by about 25% from their peak after the market shifted from expectations of a Fed interest rate cut to forecasts that the agency may raise interest rates.

Going forward, the direction of real yields will be more important than the absolute yield. If interest rate pressures ease, gold could recover even if yields remain relatively high. The organization also emphasized that gold prices are not solely dependent on the Fed's policies. Demand from central banks, a declining reliance on the US dollar, concerns about public debt, and geopolitical instability remain long-term supporting factors.