Vietnam Gold Prices Decline Despite Global Surge

Vietnamese domestic gold prices fell on the morning of July 30, despite a global price increase. Saigon Gold and Silver Company (SJC) lowered its buying and selling prices for gold bars by VND 500,000 and VND 1 million respectively, trading at VND 137-140 million per tael. This narrowed the gap between buying and selling prices to VND 3 million. Other brands also saw similar movements. Plain rings were also adjusted similarly to gold bars by SJC, currently listed at VND 136-139.5 million. PNJ traded these items around VND 135.8-139.8 million. DOJI bought and sold plain round rings at VND 137.3-141.3 million, while Bao Tin Minh Chau listed them at VND 138-142 million. Meanwhile, international gold prices have been rising, with the world price gaining over $12 per ounce to reach $4,054 by the close of trading on August 3. This morning, the precious metal continued to increase slightly by $4. According to experts, while domestic gold prices tend to follow international trends, they do not move in complete unison. When converted at Vietcombank's exchange rate, the world price of the precious metal is equivalent to nearly VND 129 million per tael, resulting in a price difference of VND 11 million between domestic and international markets. Domestic gold prices are showing signs of stabilization as investors monitor signals from potential negotiations between the US and Iran, and US employment reports for clues about the Federal Reserve's (Fed) interest rate path. Conflicts in the Middle East have pushed energy prices higher, raising inflation concerns. This could lead central banks to raise interest rates to curb price pressures. Gold is often seen as an inflation hedge, but when countries tighten monetary policy, it can put pressure on the metal's price as it does not pay periodic interest. Domestic silver bar prices rose more than 1% today. Phu Quy, DOJI, and Ancarat bought and sold silver bars at VND 2.16-2.24 million per tael, equivalent to VND 57.9-59.7 million per kg.