At 7 pm on May 12, international gold prices plummeted from $3,280 per ounce to just above $3,200 per ounce. This marks a decrease of $120 per ounce compared to the previous week, or a loss of 3.8 million VND per tael.
About half an hour later, gold prices rebounded to $3,226 per ounce but still reflected a significant drop from the previous session.
With this decline, gold prices have now fallen by $274 per ounce, or 8.5%, from their record high of $3,500 per ounce.
The sharp drop in global gold prices came immediately after positive developments in US-China trade negotiations over tariffs. As per the agreement reached in Geneva, Switzerland, the US will reduce tariffs on Chinese goods from 145% to 30%, while China will lower tariffs on US imports from 125% to 10%.
SJC gold bar prices also witnessed a sharp decline.
Analysts attribute this development to the easing of tensions between the world’s two largest economies, despite this agreement being just the first step towards a long-term solution.
The positive news on US-China tariffs boosted global stock markets and caused a surge in the US Dollar Index (DXY) to 101.66 points, a 1.31% increase from the previous session. These factors contributed to the downward pressure on gold prices.
The drop in global gold prices had a ripple effect on domestic gold rates.
By the end of the day, SJC gold bars were listed by SJC and PNJ at 117.2 million VND per tael for buyers and 119.2 million VND per tael for sellers, reflecting an 1.8 million VND decrease from the morning session. Compared to the previous week, SJC gold bars lost 2.8 million VND per tael.
Global gold prices took a nosedive this evening.
Similarly, gold rings and 99.99% gold jewelry were offered at 112.5 million VND per tael for buyers and 115 million VND per tael for sellers, a decrease of 1 million VND from the morning session, and a 2 million VND loss compared to the previous day.
Despite the uniform decline following global trends, SJC gold bars and gold rings maintained a significant price difference.
Currently, the international gold price, when converted at the listed exchange rate, is approximately 101.7 million VND per tael, which is 13.3 million VND lower than the gold ring price and 17.6 million VND lower than the SJC gold bar price.
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