Sharp Decline in Gold Prices

In a surprising turn of events, the Saigon Jewelry Company reported a 1.19% drop in gold bar prices, now standing at VND100.1 million (US$3,879.09) per tael. This measurement, equivalent to 37.5 grams or 1.2 ounces, marks a significant downturn in the local market.

Global Impact on Gold

The downturn isn't isolated to Vietnam. Globally, gold prices fell by more than 3% on Friday, wiping out earlier gains. This sell-off was triggered by investors liquidating bullion to cover losses from a broader market downturn, fueled by escalating trade war fears and looming global recession concerns, as reported by Reuters.

Expert Analysis

"Gold's role as a liquid asset means it's often the first to be sold in times of financial stress," explained Suki Cooper, an analyst at Standard Chartered. "This behavior is consistent with historical trends during risk events."

Spot gold prices reflected this trend, dropping 2.9% to $3,024.2 an ounce, after reaching a session low of $3,015.29. Despite hitting a record high of $3,167.57 just the day before, gold closed the week down 1.9%.