Gold Prices Plunge to 6-Week Low Amid Rising Oil Prices and Anticipated Federal Rate Hikes

Gold prices in Vietnam experienced a notable decline on Thursday, marking their lowest level since the 11th of June. The downturn continued from the morning into the afternoon session, reflecting a trending decrease in gold prices throughout the year.

Trends in Gold Prices

The Saigon Jewelry Company reported a drop of 1.41% in the price of their gold bars, bringing the price to VND140 million, or US$5,321.37, per tael. This decrease marks a total decline of 4.11% since Wednesday’s close. Additionally, the cost of a gold ring plummeted by 1.85%, settling at VND143.3 million per tael. Overall, gold prices in Vietnam have fallen by 8.4% this year.

Internationally, the value of gold also fell on Thursday, drifting down from a two-week peak reached earlier. This worldwide decrease was caused by various factors, including a growing conflict in the Middle East, which has led to a surge in oil prices. Traders are also awaiting the outcomes of the Federal Reserve policy meeting next week for indications regarding the possible timing of interest rate hikes.

Spot gold fell by 0.6%, bringing the price to $4,103.39 per ounce. This shift comes after spot gold reached its highest value since July 7th at $4,165.87 on Wednesday. Concurrently, August delivery for U.S. gold futures dropped by 1.1% to $4,106.40.

Market Influences and Future Predictions

These changes in the gold market can be attributed to various causes, as explained by Jigar Trivedi, a senior research analyst at IndusInd Securities. According to him, “Rising oil prices have contributed to escalating inflation and the anticipation of Fed rate hikes. Consequently, these factors have limited the positive momentum in the gold market as the dollar weakens.”