The price of gold in Vietnam decreased on Saturday morning due to a global drop in bullion prices following the release of the most recent U.S. employment report, which indicated economic expansion.
The Saigon Jewelry Company saw its gold price decrease by 0.68%, reaching VND117.2 million (US$4,498.35) per tael.
The price of a gold ring dropped by 0.70%, now standing at VND113.6 million per tael. It's worth noting that one tael is equivalent to 37.5 grams or approximately 1.2 ounces.
The price of gold has increased by 39% this year.
Worldwide, gold prices dropped over 1% on Friday following a better-than-predicted U.S. employment report, which reduced expectations of upcoming Federal Reserve interest-rate reductions this year. Meanwhile, silver surged to levels not seen since 2012. Reuters reported.
Benchmark gold declined by 1.1% to reach $3,316.13 per ounce, though it has gained 0.8% over the course of this week.
Gold is seen as protection against inflation and political instability. However, rising interest rates diminish gold’s attractiveness because it doesn’t generate any interest income.
A report from the U.S. Labor Department indicated that non-farm payrolls rose by 139,000 in May, exceeding economist forecasts which anticipated an increase of around 130,000 as per analysts surveyed. Reuters The unemployment rate was at 4.2%, matching expectations.
The data received aligns with expectations, which is not good news for gold since it indicates that the Federal Reserve will likely maintain its current stance for some time, according to Marex analyst Edward Meir.
"These are extremely challenging discussions, and they won’t be resolved merely over the telephone. Should the news about tariffs turn unfavorable, this would be positive for gold prices," Meir noted additionally.
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