Gold Prices Dip Locally and Globally

Saigon Jewelry Company reported a slight decrease in gold bar prices by 0.25%, bringing it down to VND119.7 million (US$4,586.21) per tael. Similarly, gold ring prices saw a reduction of 0.34%, settling at VND115.9 million. It's noteworthy that a tael is equivalent to 37.5 grams or 1.2 ounces.

International Market Trends

On the global stage, gold prices fell on Friday, marking a second consecutive weekly loss. This decline was influenced by a slight increase in the dollar's value and the truce between Israel and Iran, which alleviated some geopolitical tensions. Investors are keenly awaiting U.S. inflation data to gauge the Federal Reserve's interest rate decisions.

Spot gold decreased by 1% to $3,292.19 per ounce, with a total weekly loss of 2.2%. Meanwhile, U.S. gold futures dropped by 1.3% to $3,305.20.

Market Analysis

The dollar's 0.2% rise against other currencies has made gold more expensive for foreign buyers, given that gold is priced in dollars. Gold typically performs well in a low-interest-rate environment since it does not yield interest.

Comments from U.S. President Donald Trump suggested that the Fed should lower interest rates due to mild inflation. However, only two Fed policymakers have so far considered a rate cut at the upcoming July meeting.

Marex analyst Edward Meir speculated on a potential shift in investor focus, saying, "I think what could be happening is that some length is leaving gold and finding its way into other precious metals, like platinum and palladium...So maybe some speculative rotation at work."