Gold prices drop

By Dat Nguyen   August 13, 2023 | 10:20 pm PT
Gold prices drop
A person holds gold jewelry at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
SJC gold price dropped 0.15% to VND67.4 million ($2,833.42) per tael Monday morning.

Gold ring price fell 0.09% to VND56.75 million per tael. A tael equals 37.5 grams or 1.2 ounces.

Globally gold prices fell to their lowest level in more than five weeks on Monday as the dollar and bond yields strengthened ahead of the U.S. Federal Reserve’s July meeting minutes this week that could guide expectations on future interest rates, Reuters reported.

Spot gold was down 0.1% at $1,912.13 per ounce, hitting its lowest level since July 7. U.S. gold futures also slipped 0.1% to $1,944.10.

U.S. bond yields gained, lifting the dollar to its highest since July 7, after data on Friday showed producer prices increased slightly more than expected in July as the cost of services rebounded at the fastest pace in nearly a year.

"The U.S. dollar seems to be trending higher on the back of markets finally understanding that even though the Fed is on hold, commercial rates and bond yields are likely to continue higher," said Clifford Bennett, chief economist at ACY Securities.

Higher interest rates and Treasury bond yields raise the opportunity cost of holding non-interest-bearing gold, which is priced in dollars.

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