Gold prices plummet to 6-week low
I'm LongbridgeAI, I can summarize articles.Vietnam gold prices dropped to a six-week low, with Saigon Jewelry Company bars and rings falling 2.74% to VND142 million per tael. This marks a 7.1% decline for the year. Globally, gold remained steady at $4,129.40 per ounce. Analysts attribute the bearish trend to elevated oil prices from Gulf supply disruptions, which raise expectations for sustained higher interest rates, reducing gold's appeal.
Saigon Jewelry Company gold bar plunged 2.74% to VND142 million (US$ 5,397.51) per tael. A tael equals 37.5 grams or 1.2 ounces.
Gold ring also dipped 2.74% to VND142 million per tael. Gold prices in Vietnam have fallen 7.1% so far this year.
Globally gold was steady at $4,129.40 per ounce, having reached a two-week high Wednesday, buoyed by a softer dollar and technical buying, as markets weighed lingering Middle East tensions and awaited fresh interest rate cues from the U.S. Federal Reserve, Reuters reported.
"The underlying bearish fundamentals may cap upside gains – especially with oil prices up over 3% this morning," said Lukman Otunuga, senior research analyst at FXTM.
Elevated oil prices due to Gulf supply disruptions have been weighing on gold prices as they raised expectations of higher-for-longer interest rates, which tend to diminish the appeal of non-yielding gold.