Gold Prices Take a Turn for the Worse

In an unexpected turn of events, the Saigon Jewelry Company reported a notable decrease in gold bar prices, now standing at VND97.7 million (US$3,818.27) per tael. This marks a 1.2% drop from the morning and a significant 2.7% fall from its historic high of VND100.4 million on Thursday.

Global Gold Market Trends

On the global stage, gold prices were on a path to secure their third consecutive weekly gain. This surge is attributed to the U.S. Federal Reserve's hints at potential rate cuts and the increased demand for safe-haven assets amidst geopolitical and economic uncertainties, as reported by Reuters.

However, spot gold saw a 0.5% decrease to $3,028.77 an ounce, largely due to the strengthening U.S. dollar. Similarly, U.S. gold futures experienced a slight 0.3% drop to $3,035.70.

What's Driving the Gold Market?

"Gold is trading down slightly in today's Asia session due to U.S. dollar strength across the board among the major currencies," explained Kelvin Wong, senior market analyst, Asia Pacific, at OANDA.

This year, a combination of factors including tariff uncertainties, rate cut expectations, and renewed tensions in the Middle East have driven gold to unprecedented levels, achieving 16 record highs with four surpassing the crucial $3,000 mark.

As a non-yielding metal, gold serves as a hedge against geopolitical and economic turbulence, thriving particularly in low-interest-rate environments.