Gold jewelry on display at a store in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Vietnam gold prices declined Wednesday morning while global bullion rates bounce back following the previous session’s drop.
Saigon Jewelry Company gold bar price went down 0.47% to VND147.5 million (US$5,603.47) per tael. Similar prices were also seen at lender ACB.
Local gold bar rates have risen by over 70% in the year to date and are VND20-21 million per tael higher than global prices.
Gold ring price dropped 0.48% at VND145.2 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold prices rose on Wednesday, as bargain hunters stepped in after bullion dropped to a near one-week low in the previous session, while focus was also on the U.S. private payroll data for cues on future interest rate cuts, Reuters reported.
Spot gold rose 0.9% to $3,965.49 per ounce. Bullion fell more than 1.5% on Tuesday, hitting its lowest since Oct. 30. U.S. gold futures for December delivery rose 0.4% to $3,974.10 per ounce.
The U.S. Federal Reserve cut interest rates last week and Chair Jerome Powell signaled it might be the last reduction in borrowing costs for the year.
Non-yielding gold tends to do well in a low-interest-rate environment and during times of economic uncertainty.
Bullion hit a record high of $4,381.21 on Oct. 20, but has fallen about 10% since.
“It’s just bargain buying and broader risk-off sentiment across financial markets supporting safe-haven demand for gold,” said Jigar Trivedi, a senior currency analyst at Reliance Securities.
“Gold is being pressured by waning expectations of another rate cut this year and might see further pressure down to $3,900 if the ADP data is on the higher side.”
