Gold prices plunge 12% from historic peak

By Minh Hieu   June 2, 2024 | 07:20 pm PT
Gold prices plunge 12% from historic peak
A person holds a gold bar at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Saigon Jewelry Company gold price has plummeted by 12% from its all-time high of VND92 million (US$3,619.91) seen on May 10 to VND81 million ($3,185.84) Monday.

Gold bar price is down 3% from the weekend. A tael equals 37.5 grams or 1.2 ounces.

Gold ring price fell 0.53% from the weekend to VND75.3 million per tael.

The sharp decline started after the State Bank of Vietnam last Thursday announced it would sell gold through four state-owned lenders, namely Agribank, Vietcombank, BIDV, and VietinBank, to stabilize domestic prices.

Globally, gold price edges lower to $2,325 on Monday during the early Asian trading hours, FXStreet reported.

The recent U.S. PCE inflation report was not sufficient to prompt a Federal Reserve (Fed) rate cut, and the central bank might need some time to achieve its goal.

This, in turn, weighs on the precious metal as it increases the opportunity cost of holding the non-yielding asset.

Meanwhile, the ongoing Middle East geopolitical risks might provide some support to gold.

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