Gold Prices Take a Hit

Saigon Jewelry Company's gold bar prices have seen a sharp decline, dropping by 4.2% to VND115 million (US$4,445.31) per tael. It's important to note that a tael is equivalent to 37.5 grams or 1.2 ounces.

Rings Also Affected

Not just bars, but gold rings have also experienced a decrease, falling by 0.85% to VND116 million per tael.

Global Spot Gold Down

On a global scale, spot gold wasn't spared either, witnessing a 0.44% drop to $3,327.00.

Citi Research's Updated Forecast

In light of these developments, Citi Research has adjusted its gold price target for the upcoming three months, raising it to $3,500 per ounce from $3,200. This revision is attributed to increased gold purchases by Chinese insurers and the flow towards safe-haven assets amidst tariff risks and market volatility.

According to Citi analysts, the current scenario suggests that gold is in an extremely rare physical deficit, indicating that price increments may be necessary to encourage stockholders to sell and balance the market.