Gold prices drop
Vietnam's gold prices fell on Monday morning even as the metal posted a modest gain on global markets.
Gold prices have experienced a slight decline in recent days. The Saigon Gold Jewelry Company reported a drop in the price of gold bars by 0.35% to VND143.1 million (US$5,522.76) per tael, while gold ring prices decreased by 0.56% to VND142.3 million per tael. A tael is equivalent to 37.5 grams or 1.2 ounces. Globally, gold prices managed to increase marginally on Monday as lower oil prices provided support to the precious metal.
Investors were closely monitoring the Federal Reserve's potential interest rate hike later in the year and searching for further indications of the U.S. central bank's policy stance. Spot gold prices rose by 0.3% to $4,175.60 per ounce, with U.S. gold futures for December delivery gaining 0.4% to $4,196.40. However, oil prices experienced a drop on Monday following U.S. President Donald Trump waiving sanctions and tariffs on Russia, which could potentially result in increased Russian fuel exports.
Analyst Tim Waterer from KCM Trade explained that gold is showing a slight upward trend at the beginning of the week, responding positively to the softer tone in oil prices from an inflation standpoint. In the near term, a more significant decline in oil prices or a clearer downward movement in yields would be the most favorable catalysts for gold, as both factors would help alleviate inflation and concerns about interest rates.
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