Gold prices in Vietnam experienced a significant decline on Monday morning, mirroring global trends as bullion rates eased by over 1%. The price of Saigon Jewelry Company gold bars fell by 1.24%, settling at VND 119.5 million (approximately US$ 4,597.04) per tael. Meanwhile, the price of gold rings dropped by 1.29%, priced at VND 115 million per tael. (Note: A tael equals 37.5 grams or 1.2 ounces.)
Despite the recent decline, gold bar prices in Vietnam have seen a substantial increase of 40.6% year-to-date. The State Bank of Vietnam has indicated it may intervene in the gold market if necessary, particularly to address the significant disparity between domestic and global gold prices, according to Nguoi Lao Dong newspaper.
Global Factors Driving the Price Drop
On the global stage, gold prices saw a reduction of more than 1% on Monday, as easing U.S.-China trade tensions boosted investor confidence, leading to reduced demand for safe-haven assets like gold. Additionally, the strengthening of the U.S. dollar added further pressure on gold prices.
Spot gold dropped by 1.4%, reaching $3,272.89 per ounce. Gold had reached a record high of $3,500.05 per ounce on April 22. U.S. gold futures eased by 0.4%, trading at $3,283.70.
The rise of the U.S. dollar against a basket of other currencies made gold more expensive for overseas buyers, further contributing to the price decline.
Market Sentiment and Trade Outlook
Experts believe that market sentiment has improved following recent developments in U.S.-China trade talks. Tim Waterer, Chief Market Analyst at KCM Trade, noted, “It’s probably fair to say that financial markets and risk-assets in particular are feeling slightly better about the tariff picture now compared to the frantic first week in April.” He added that recent comments from the White House have fueled optimism for a potential U.S.-China trade deal, which in turn has decreased demand for gold as a safe-haven asset.
Historically, gold has been seen as a hedge against economic and political uncertainty, especially in low interest rate environments, but the current global developments are shifting the dynamics in the bullion market.
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