Vietnam Gold Prices Plunge Amid Record Global Bullion Weekly Losses

In Vietnam, the price of gold witnessed a decline on Friday morning, following the global trend where bullion rates are experiencing the steepest weekly fall in six years. The price of a gold bar from Saigon Jewelry Company fell by 0.34%, coming down to VND174.9 million ($6,645.9) per tael. This rate was echoed by other sellers in the market.

Locally, bullion prices have seen a 9% decrease from the peak of VND191.3 million per tael, which was recorded in January. Despite the recent slip, the prices are still 10% higher on a year-on-year basis. Currently, the local rates are approximately VND26.5 million per tael more than the global rates.

The price of gold rings followed a similar pattern, slipping to VND174 million per tael. It is important to note that a tael is equivalent to 37.5 grams or 1.2 ounces.

On a global scale, spot gold rose by 0.8% to $4,686.97 an ounce on Friday. However, cumulatively for the week, it has fallen close to 7%, marking the largest weekly loss since March 2020. This trend has been attributed to the escalating conflict in the Middle East, which has increased energy prices and subsequently led to dampening expectations for rate cuts.

Historically viewed as a safe haven, the precious metal has seen a decline every week since the conflict broke out last month. Factors contributing to this trend include strengthening Treasury yields and the U.S. dollar, investors selling bullion to offset losses elsewhere, and outflows from gold-backed exchange-traded funds.

Daniel Ghali, a commodity strategist at TD Securities, commented on the situation. He noted that gold, a popular choice for institutional investors, has seen its position waver due to the ongoing debasement trade. Ghali further added that there is a significant potential for gold to experience further selling off, even while maintaining its bull market era trend support.