Gold prices drop to 6-week low

Saigon Gold Jewelry Company gold bar price started the week 0.7% lower at VND143.4 million (US$5,524) per tael, its lowest since Aug. 19.

Gold ring price saw a similar drop to VND142.9 million per tael. A tael equals 37.5 grams or 1.2 ounces.

Globally, gold prices fell more than 2% on Monday as a rise in oil prices heightened inflation concerns and reinforced ‌expectations of further Federal Reserve interest-rate hikes, Reuters reported.

Spot gold was down 2.1% at $4,198.10 per ounce, on track for its biggest daily decline since September 1. US gold futures fell 2.1% to $4,231.00.

Iran insisted that only diplomacy can solve its conflict with the United States and Israel, after US President Donald Trump said he rejected an Iranian proposal to reopen the Strait of Hormuz and end fighting. Oil prices drifted higher.

Gold bars at a store in Ho Chi Minh City. Photo by VnExpress/Quynh Tran

"The high bond yields and high oil price tandem continues to act as a thorn in gold's side. Oil prices have risen on ⁠mixed signals about oil flows, which is keeping inflation front and center for investors," said Tim Waterer, chief market analyst at KCM Trade.

Investors will watch a run ⁠of US labor market and inflation data this week.

"Stronger-than-expected inflation or employment numbers could keep upward pressure ⁠on bond yields and weigh further on gold," Waterer said.