Vietnam’s Gold Prices Tumble: Global Market Trends and Implications Explored
Gold prices in Vietnam witnessed another slump on Monday afternoon, following an earlier decrease of 0.2% in the same session. Saigon Jewelry Company reported a fall in the price of gold bars by 0.82% from the morning rate, settling at VND146 million (US$5,552.39) per tael. This resulted in an overall loss of approximately 1% for the day.
Additionally, the price of gold rings also declined by 1%, reaching VND145 million per tael. It should be noted that a tael is equivalent to 37.5 grams or 1.2 ounces.
Global Gold Price Trend
Internationally, gold prices remained stable on Monday. Investors worldwide were assessing the influence of the escalating tensions between the U.S. and Iran on oil prices. Concurrently, U.S. Federal Reserve policymakers hinted at potential interest rate hikes to alleviate inflationary pressure.
The spot price of gold lingered at $4,018.75 per ounce. Meanwhile, U.S. gold futures for August delivery slightly advanced by 0.1%, reaching $4,023.20.
UBS analyst Giovanni Staunovo noted the negative correlation between gold and oil prices. He stated that market players are vigilantly monitoring the developments in the Middle East. Staunovo predicted a weaker dollar would bolster gold prices in the next 6 to 12 months, with expectations of the precious metal surpassing the $5,000 per ounce mark.
Questions & Answers
How much did gold prices in Vietnam fall on Monday?
Gold prices in Vietnam fell by approximately 1% on Monday.
What is the recent global trend in gold prices?
Globally, gold prices have remained steady. However, the impact of the U.S.-Iran conflict on oil prices and possible interest rate hikes by the U.S. Federal Reserve are being closely observed by investors.
What are the predictions for gold prices in the future?
According to Giovanni Staunovo, a UBS analyst, a weaker dollar is expected to support an increase in gold prices over the next 6 to 12 months, potentially moving above the $5,000 per ounce mark.