Vietnam gold price drops despite global gain

Prices of gold bars branded SJC on Wednesday decreased 0.15% from the previous day to VND67.1 million ($2,722.11) per tael.

But gold ring prices went up 0.28% to VND54.15 million per tael. A tael is equal to 37.5 grams or 1.2 ounces.

Global spot gold was up 0.1% at $1,751.89 per ounce, aided by a dip in the U.S. dollar, with investors largely focusing on Federal Reserve Chair Jerome Powell’s speech for insights into the U.S. central bank’s monetary policy path, Reuters reported.

Powell’s speech is the main focus for the market, said Edward Meir, an analyst with ED&F Man Capital Markets.

"If Powell takes a hawkish stance, the dollar will strengthen and gold will move lower, probably back to the $1,745 level. But if he sounds more conciliatory, then gold could maybe move up to the $1,780 level."

Meanwhile, top gold consumer, China reported a slight drop in new Covid cases for Nov. 29, the National Health Commission said.

Gold needs a strong China as it drives risk appetite and could bolster jewellery demand, and bullion could gain if China’s health authorities provide some clear signals that they are close to tweaking their zero-Covid policy, Edward Moya, senior analyst with OANDA, said in a note.