Gold prices drop to 13-month low

Gold prices in Vietnam reached a 13-month low this week, according to Saigon Gold Jewelry Company. Their gold bar price fell 0.72% to VND138 million (US$5,378.96) per tael, marking the lowest point since October 3, 2025. This decline represents a 9.7% drop since the beginning of the year, which is nearly VND16 million higher per tael compared to global prices. Similarly, gold ring prices also decreased by 0.72% to VND137.8 million per tael.

Despite global gold prices experiencing a slight upward trend on Friday, moving away from a year's lowest level, the market remained poised for a weekly decline. This trend was attributed to concerns over rising oil prices, which contributed to inflation worries, and the expectation of prolonged elevated U.S. interest rates. Spot gold increased by 0.2% to US$3,883.05 per ounce following a 3% drop in the previous session. However, bullion prices have fallen 4.4% this week.

Rajeev De Mello, a global macro portfolio manager at GAMA Asset Management SA, expressed concern over the decline at the end of the New York session, noting that it aligned well with the rising bond yields. De Mello suggested that the price drop could be partly explained by reserve managers stepping in as gold prices fell below the $4,000 per ounce psychological barrier earlier in the week.

This barrier had been approached in July and late October, with support from long-term investors such as central banks, large institutions, and Chinese households. However, despite these factors, futures markets for gold continued to indicate a weekly decline.