Gold prices continue to slide

Saigon Jewelry Company gold bar price dropped 0.67% from the morning to VND148.5 million (US$5,647.56) per tael, extending losses for the day to 1.1%.

Gold ring price also fell 1.1% for the day to VND148.2 million per tael. A tael equals 37.5 grams or 1.2 ounces.

Globally, gold traded within a tight range on Wednesday as investors looked for fresh signals on the U.S. Federal Reserve's interest rate outlook, while renewed U.S. airstrikes on Iran fueled concerns that energy prices and inflation could rise again.

Spot gold rose 0.4% to $4,123.55 per ounce after dropping to its lowest since July 2 earlier in the day. U.S. gold futures for ⁠August delivery shed 0.5% to $4,135, Reuters reported.

Oil climbed more than 3%, U.S. Treasury yields moved higher and the dollar rose to its highest level in a week.

A person holds gold bars at a store in Ho Chi Minh City. Photo by VnExpress/Thanh Tung

Investors are awaiting the minutes of the Federal Open Market Committee's June 16-17 meeting due later on Wednesday for clues on the Fed's rate path under Chair Kevin Warsh.

While gold is seen as an inflation hedge and usually gains in times of ⁠geopolitical uncertainty, high interest rates tend to weigh on the non-yielding asset. The metal has fallen by more than one-fifth since the Iran conflict began in late February.

"All the gold and silver markets care about at the moment is the question if the US Federal Reserve will raise interest rates or not," Carsten Menke, head of next-generation research at Julius Baer Group Ltd., said in a note cited by Bloomberg.

"We do not expect the Fed to raise rates, as part of the inflationary pressure should turn out to be temporary."