Gold prices continue to drop

Saigon Jewelry Company gold bar price dropped another 2.37% to VND165 million (US$6,264.95) per tael following an earlier 1.17% decrease.

Gold ring price declined by roughly the same rate to VND164.7 million per tael. It also fell 1.17% in the morning. A tael equals 37.5 grams or 1.2 ounces.

Globally, spot gold slid 2.7% to $4,366.94 per ounce on Monday, its lowest since Jan. 2, as an escalating Middle East conflict stoked inflation concerns and expectations of higher global interest rates, Reuters reported.

U.S. gold futures for ⁠April delivery, meanwhile, fell 4.5% to $4,369.90.

"With the Iranian conflict into its fourth week, and oil prices hanging around the $100 level, expectations have pivoted from rate cuts to potential rate hikes, which have tarnished gold's appeal from a yield point of view," said Tim Waterer, chief market analyst, KCM Trade.

"Gold's high liquidity appears ‌to ⁠be hurting it during this risk-off period. Downturns in stock markets are leading to gold portions being closed to cover margin calls on other assets."

The closure ⁠of the Strait of Hormuz kept crude elevated, stoking inflation fears by pushing up transport and manufacturing costs. While rising inflation typically boosts gold's appeal as a hedge, high rates curb demand for the non-yielding ⁠asset.