Gold Bars Drop as Global Rates Fall: An International Perspective

On Wednesday morning, Vietnam's gold bar prices declined amid a drop in global bullion rates.

The price of gold bars from Saigon Jewelry Company decreased by 0.4%, dropping to VND121.7 million (US$4,688.79) per tael.

The cost of gold rings remained steady at VND118 million per tael. One tael is equivalent to 37.5 grams or approximately 1.2 ounces.

In its most recent submission to the National Assembly, the State Bank of Vietnam disclosed intentions to revise a decree governing the gold market in order to simplify current processes. Additionally, they mentioned their collaboration with various departments to intensify oversight and examinations of gold-trading enterprises and retail outlets, aiming to swiftly detect and rectify breaches or gaps.

Worldwide, gold prices dropped on Wednesday because the hope surrounding possible U.S.-China trade discussions reduced the appeal of safe-haven investments. Meanwhile, investors were preparing for the Federal Reserve’s monetary policy announcement expected later that day. Reuters reported.

Spot gold was down 1.3% at $3,383.88 an ounce. The metal climbed nearly 3% in the previous session.

"Gold seems to be pulling back amid a broad-based ‘risk on’ move across markets ... this is a pro-cyclical configuration that might echo optimism amid clues that the U.S. and China have started real trade negotiations," said Ilya Spivak, head of global macro at Tastylive.

U.S. Treasury Secretary Scott Bessent and lead trade negotiator Jamieson Greer will hold discussions with key Chinese economic figure He Lifeng in Switzerland over the upcoming weekend.

Market participants are closely watching Fed Chair Jerome Powell’s comments for insights into when future interest-rate cuts might occur.

Historically, gold has been viewed as a safeguard against economic and political instabilities, performing well particularly when interest rates are low.