Vietnam Gold Prices Drop VND1 Million, International Gap Persists

Domestic gold prices in Vietnam have fallen by VND1 million per tael, reaching around VND146 million as of the afternoon of September 21. This fluctuation is attributed to a combination of factors, including the US Federal Reserve's interest rate policies and the global outlook for gold demand. Saigon Gold and Silver Group (SJC) announced afternoon trading prices for gold bars at VND143.6-146.6 million per tael, a VND1 million decrease from the morning's opening. Mi Hong Company also lowered its gold bar prices to VND143.7-145.2 million per tael. Plain gold rings at SJC also saw a similar reduction, trading between VND143.1-146.1 million. Meanwhile, DOJI Gold and Silver Group listed plain gold rings at VND143.1-147.1 million, with a wider spread between buying and selling prices compared to the market. Mi Hong's plain ring prices are set at VND143.7-145.2 million per tael. On the international stage, spot gold prices have declined by over $25 per ounce, approximately 0.6%, in the past 24 hours. As of 2 PM Hanoi time, the precious metal was trading around $4,353 per ounce. Converted using Vietcombank's selling exchange rate, this is equivalent to VND137.5 million per tael, excluding taxes and fees. The current difference between domestic and international gold prices hovers around VND9 million per tael. Over the past month, domestic gold prices have generally traded below VND150 million per tael. Compared to the peak of VND191 million set in early March, prices are now VND44 million (23%) lower per tael. Year-to-date, gold prices have decreased by about 6%, or VND4 million. While the US Federal Reserve's interest rate hikes are theoretically unfavorable for precious metals, a UOB (Singapore) executive stated on September 18 that the Fed's latest move does not alter previous gold price forecasts. UOB experts anticipate that gold prices will remain supported in the long term by a weakening US dollar, central banks diversifying reserves, and jewelry consumption demand, particularly in India and China. "We believe the market has formed a temporary bottom around $4,000 per ounce," UOB projected. The bank forecasts gold prices could reach $4,500 per ounce in the fourth quarter of this year, followed by $4,800 in the first quarter of 2027, $5,100 in the second quarter, and $5,400 in the third quarter of next year. In the foreign exchange market, the State Bank of Vietnam announced the central exchange rate at VND25,637 this morning, unchanged from the previous weekend. USD prices at commercial banks remained stable, with Vietcombank listing them at VND25,790-26,200 per USD. On the free market, USD prices at some currency exchange points were also stable, selling around VND26,000 per USD. Source: VnExpress