Gold tumbles to 5-month low

Gold ring price also dropped 0.46% to VND53.95 million per tael. A tael equals 37.5 grams or 1.2 ounces.

Globally gold prices slipped to a one-week low on Wednesday after U.S. Federal Reserve Chair Jerome Powell said interest rates might need to go higher than previously expected to curb inflationary pressures, Reuters reported.

Spot gold was down 0.1% at $1,811.83 per ounce after falling more than 1% on Tuesday.

The dollar index hit a three-month month high, making bullion less affordable for buyers holding other currencies.

The Fed will likely need to raise interest rates more than expected in response to recent strong data and is prepared to move in larger steps if the “totality” of incoming information suggests tougher measures are needed to control inflation, Powell told U.S. lawmakers on Tuesday.