Gold prices rose in Vietnam on Monday, following an uptick in global markets driven by a weaker U.S. dollar and renewed geopolitical tensions.
The Saigon Jewelry Company (SJC) reported a 0.68% increase in gold bar prices, bringing them to VND119.3 million (approximately US$4,597.04) per tael. Meanwhile, gold ring prices also saw a gain of 0.44%, reaching VND114.5 million per tael. A tael is a traditional Vietnamese unit of weight equivalent to 37.5 grams or 1.2 ounces.
Global Market Movement
On the international front, spot gold rose 0.7% to $3,223.55 per ounce, while U.S. gold futures advanced 1.3% to $3,228.70, according to Reuters. The rebound comes after the yellow metal shed over 2% last Friday, marking its worst weekly performance since November, largely due to an increase in investor appetite for risk following a temporary U.S.-China trade agreement.
However, the outlook shifted again as U.S. Treasury Secretary Scott Bessent reiterated President Donald Trump’s threats to reimpose tariffs on China, stoking fears of renewed trade tensions. This, coupled with a softer U.S. dollar, boosted demand for gold, traditionally viewed as a safe-haven asset.
Impact of U.S. Credit Downgrade
The recent downgrade of the U.S. government’s credit rating by Moody’s has also contributed to the bullish sentiment in the gold market. Tim Waterer, Chief Market Analyst at KCM Trade, noted that the downgrade prompted a “risk-off” reaction, pushing investors back toward gold.
“The Moody’s downgrade of the U.S. credit rating and the corresponding market reaction has put some pep back into the gold price,” Waterer said.
He added that upcoming decisions by the Federal Reserve could play a pivotal role in gold’s future performance. “I think we could be looking at a July or September rate cut, but how Trump’s trade negotiations fare in the interim could be a determining factor,” he said.
Market Outlook
Gold tends to perform well in environments of economic or political uncertainty and when interest rates are low, as it offers no yield. With uncertainty still looming over global trade and monetary policy, analysts say safe-haven demand could continue to support gold prices in the near term.
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