Vietnam gold plunges amid global sell-off

The national brand Saigon Jewelry Company gold bar was sold at VND79 million per tael ($3,144.28) at the time of publishing, compared to VND79.8 million Monday afternoon.

Domestic price is now around 7.5% higher than global rate.

Globally gold declined by more than 1.6% to $2,404.53 per ounce Monday afternoon and has barely changed at the time of publishing.

Wall Street tumbled, as fears of the U.S. tipping into recession following weak economic data last week rippled through global markets, Reuters reported.

“Investors are spooked and they’re selling what they can, and that includes gold and silver,” said Jim Wycoff, senior analyst at Kitco Metals.

While gold is considered a safe refuge during such uncertainties, it was not immune to Monday’s sell-off as investors dumped assets across the board.

“What you’re seeing is just risk assets across the board under pressure Monday morning and gold is falling prey to that same pressure,” said David Meger, director of alternative investments and trading at High Ridge Futures.

However, analysts said gold, which has risen more than 16% thus far this year, could regain its footing looking ahead, given the persistent economic and political uncertainties and also on expectations of interest rate cuts from the Federal Reserve, which should bode well for the zero-yield bullion.

“Elevated geopolitical tensions and recent hopes for even greater Fed rate cuts should create supportive conditions for bullion. Ultimately, gold should be able to post a new record high once nerves settle,” said Han Tan, chief market analyst at Exinity Group.