Gold prices decline to 8-week bottom

Gold prices in Vietnam have hit their lowest level in eight weeks, according to the Saigon Jewelry Company. The gold bar price fell by 0.63% to VND141.5 million (US$5,448.80) per tael, while the gold ring price dropped 0.91% to VND142.2 million per tael. During the same period, gold prices globally have declined by 7.40%. Globally, gold prices were steady after a 4% plunge on Monday, amid concerns over rising oil prices fueling inflation worries.

This, in turn, raised the probability of tighter monetary policy, as well as the impact of a higher dollar and Treasury yields on the metal. As of the time of publishing, spot gold was up 0.61% to $4,138.90 per ounce. Oil prices rose by approximately 3% after U.S. President Donald Trump rejected an Iranian peace deal aimed at resolving their conflict and reopening the Strait of Hormuz.

Such a move can contribute to inflation, potentially prompting central banks to adopt a higher-for-longer rate stance. Although gold is often viewed as an inflation hedge, elevated interest rates diminish its appeal, as investors tend to favor assets that generate income.