Gold prices drop to 6-week low
Vietnam's gold prices fell to the lowest in nearly 6 weeks on Monday amid an over 2% slump in global bullion rates.
Gold jewelry prices in Saigon began the week 0.7% lower at VND143.4 million (US$5,524) per tael, marking the lowest level since August 19. Ring prices also fell to VND142.9 million per tael. On a global scale, gold prices declined by more than 2% on Monday due to rising oil prices, which sparked concerns about inflation and the likelihood of additional Federal Reserve interest-rate hikes, according to Reuters.
Spot gold fell 2.1% to $4,198.10 per ounce, setting its largest daily decline since September 1. Likewise, US gold futures decreased 2.1% to $4,231.00.
Iran maintained that diplomacy alone could resolve its conflict with the United States and Israel following US President Donald Trump's assertion that he rejected Iran's proposal to reopen the Strait of Hormuz and cease hostilities. Meanwhile, oil prices edged higher, adding to the strain on gold's performance. The combination of high bond yields and high oil prices continues to negatively impact gold, as explained by Tim Waterer, chief market analyst at KCM Trade.
Investors are expected to closely monitor a series of US labor market and inflation data releases this week. Stronger-than-anticipated inflation or employment figures could maintain upward pressure on bond yields, further exerting downward pressure on gold prices, as per Waterer's assessment.
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Also reported by 1 other outlet
- Gold prices drop over 1% as oil rises and inflation fears grow english.ajel.sa
