On the morning of 20/3, Saigon Jewelry Company (SJC) listed its gold bars at 171,3 - 174,3 million dong per tael, one million dong lower than late yesterday. Other major brands also adjusted their gold bar prices downwards. Similarly, SJC's plain gold rings saw a decrease, trading at 171 - 174 million dong, approximately one million dong less than yesterday. The Mi Hong brand also reduced its plain gold rings to 172,3 - 174,3 million dong per tael.

The current domestic gold price is now about 17 million dong lower than its peak of nearly 191 million dong recorded early this month, representing a nearly 9% adjustment. Despite this recent downturn, prices remain approximately 10% higher compared to the beginning of the year.

Domestic gold prices are trending downwards in line with international movements, though the local decline is less pronounced. The disparity between domestic and international gold prices, which hit a record 28 million dong on 19/3, narrowed slightly to around 26,5 million dong this morning. At 8:30 Hanoi time, spot gold traded internationally around USD 4,650 per ounce, having recovered USD 100 from yesterday's close. When converted using Vietcombank's selling exchange rate, the world gold price equates to 147,7 million dong per tael, making it 26,5 million dong cheaper than domestic gold.

In related markets, domestic silver prices this morning were listed by major brands around 2,8 - 2,9 million dong per tael, a slight increase from yesterday, equivalent to 75 - 77 million dong per kg. Concurrently, the official exchange rate in the foreign exchange market continued its upward trajectory. Vietcombank quoted the USD at 26,069 - 26,339 dong per USD, an increase of 14 dong from yesterday.

The recent decline in gold prices, occurring after the outbreak of the Middle East conflict, has been noted by experts as unusual, as gold is typically expected to appreciate during periods of political tension. This phenomenon can be attributed to investors reallocating their portfolios by shifting towards holding USD, which is often seen as a safer asset. Furthermore, the US Federal Reserve's (Fed) decision to maintain interest rates has also contributed to making gold less attractive to investors. According to UOB Bank and experts from the World Gold Council, while gold faces short-term pressure from a strengthening USD, the precious metal's medium and long-term outlook remains positive.

World gold price plummeted for two consecutive sessions. Chart: Kitco