Gold prices plunge amid global decline

By Minh Hieu February 27, 2025 | 08:58 pm PT

A person holds gold jewelry at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran

Vietnam gold bar price fell 0.77% to VND90.5 million (US$3,541.03) per tael Friday morning as global bullion rates were set for their biggest weekly drop in over three months.

Gold ring price slid 0.66% to VND90.4 million per tael. A tael equals 37.5 grams or 1.2 ounces.

Globally, gold edged lower on Friday and was set to post its biggest weekly drop in over three months on a stronger dollar, while investors awaited a key U.S. inflation data for cues into the Federal Reserve's monetary policy trajectory, Reuters reported.

Spot gold was down 0.1% at $2,874.69 an ounce. Bullion is down 2% so far for the week, its biggest weekly drop since November 2024, and on track for its first weekly decline after eight consecutive gains.

"While gold is deemed as a safe-haven, the uncertainty on the trade front may still see profit-taking activities extend further, amid a stronger U.S. dollar," said IG market strategist Yeap Jun Rong.

U.S. President Donald Trump said on Thursday his proposed 25% tariffs on Mexican and Canadian goods will take effect March 4 along with an extra 10% duty on Chinese imports because deadly drugs are still pouring into the U.S. from those countries.

Gold is seen as a hedge against political risks and inflation, but higher interest rates dampen the non-yielding asset's appeal.