Gold prices drop

Saigon Jewelry Company gold bar price declined by 0.82% to VND145.4 million (US$5,599.09) per tael, its lowest since Aug. 19. A tael equals 37.5 grams or 1.2 ounces.

Gold ring price similarly slipped to VND144.9 million per tael.

Globally gold rose 0.5% to $4,378.60 an ounce, having dropped 2.6% over the previous three sessions.

Oil extended gains, with Brent crude rallying towards $100 per barrel as attacks intensified in the Middle East, stoking inflation worries ahead of the release of closely watched ‌U.S. consumer price data, Reuters reported.

"A softer reading will be a relief for gold traders" as it would support the case for holding rates steady, said Ahmad Assiri, a market strategist at Pepperstone Group, as quoted by Bloomberg.

"The greater risk lies in an upside inflation surprise, which would likely strengthen the case for a hike, creating what could be massive pressure on the precious metal," he added.

The metal has traded in a relatively tight range at around $4,400 an ounce since recovering from a low near $4,000 in July, with investors repeatedly reassessing the outlook for Fed policy.

While gold faces some near-term headwinds, many investors continue to expect prices to rise as it rediscovers its traditional value as a portfolio hedge.