Gold prices shoot up from 8-month low

Saigon Jewelry Company gold bar and ring jumped 1.1% to VND147 million (US$5,587.26) per tael. A tael equals 37.5 grams or 1.2 ounces.

Gold prices in Vietnam have fallen 3.8% since the beginning of the year and 23% since the historic peak at the end of January.

Globally expectations for U.S. monetary tightening and a strong dollar have taken some wind out of the "perfect storm" powering an upswing in gold since 2023, leaving prices in vulnerable ‌territory around $4,000 per ounce as the interest rate backdrop unfolds, Reuters reported.

Gold's reversal has raised questions over the longevity of its record-breaking rally even as geopolitical risk, fiscal deficits and central bank buying continue to support the longer-term case for bullion.

After hitting a record $5,595 in January, spot gold has fallen 25%, as the Iran war spurred an oil-price rally and boosted bets on rate hikes. That has curbed bullion's safe-haven appeal, consistent with past extreme shocks, and drove prices to a six-month low on Thursday.

"In the very short ⁠term, the market has to digest the risk of a Fed hike and a stronger dollar," said Aakash Doshi, head of gold and metals strategy at State Street Investment Management.