Vietnam's Gold Prices Plunge to Eight-Week Low Amid Global Decline
Gold prices in Vietnam have plummeted to an eight-week low after a global decline. On Tuesday morning, Saigon Jewelry Company's gold bar price dropped 0.63% to VND141.5 million (US$5,448.80) per tael. A gold ring also declined by 0.91% to VND142.2 million per tael.
The global market saw a stabilization of gold prices after Monday's 4% plunge. This was largely due to inflation concerns and tighter monetary policy expectations triggered by rising oil prices. The higher dollar and Treasury yields further pressured the metal, Reuters reported.
Oil prices rose about 3% following U.S. President Donald Trump's rejection of a peace deal from Iran. Higher oil prices can lead to increased inflation, prompting central banks to adopt a more aggressive rate stance. Although gold is traditionally considered an inflation hedge, higher interest rates make it less appealing to investors who prefer yield-bearing assets.