The domestic gold price on Wednesday fell to its lowest level since December 2020 at below VND55 million (US$2,390) per tael in the wake of a sharp price drop of the precious metal in the world market.
The Saigon Gold and Jewelry Company on Wednesday rated each tael of SJC gold at VND54.26 million and VND54.6 million (sell-buy), down VND350,000 per tael from the previous day. The total decline of gold price in the past three days was VND800,000 per tael.
DOJI Group and Phu Nhuan Company (PNJ) also cut their buying price to VND54.2 million and selling price to VND54.6 million.
World gold prices fell on Wednesday to their lowest point in more than three weeks as elevated US Treasury yields and a rising dollar kept the metal on track for its biggest quarterly drop in more than four years.
World spot gold was down 0.3 per cent to $1,679.41 per ounce on Wednesday, after hitting its lowest since March 8 at $1,677.61. It has declined more than 3 per cent so far this month and 11.4 per cent during the quarter.
US gold futures were down 0.4 per cent to $1,679.10 per ounce on Wednesday.
The dollar index rose to its highest in nearly five months against rivals and was on track for its best month since November 2016.
The US 10-year Treasury yield held close to a 14-month peak hit in the previous session and was on track for a fourth straight monthly gain.
The gap between domestic and world gold price yesterday remained high at VND7.6 million per tael.
Nguyen Ngoc Trong, Director of New Partner Jewelry Company (NPJ), said that there was currently no supporting news for a gold price hike and the psychological threshold for the gold price was about $1,650 per ounce.
In the short term, experts expected gold prices would recover, but the downtrend would continue in the medium and long term.
According to gold expert Nguyen The Hung, the gold price could drop further to $1,640 – 1,650 per ounce. Then if the US bond interest rate and stocks continue to rise while the Fed has not made any move to intervene in bond interest rates, the dollar will continue to strengthen, causing pressure for a gold price drop. — VNS