Vietnam gold prices fall as dollar and yields rise

The move matters because Vietnam’s domestic gold market often reacts sharply to swings in global bullion and currency conditions, especially when international prices are already volatile. At around $4,134.4 an ounce, gold remains elevated by historical standards, but traders are facing a tougher near-term backdrop as the US dollar strengthens and the 10-year Treasury yield stays near its highest level in about two decades.

That combination usually reduces demand for non-yielding assets such as gold, even though the metal still attracts buyers seeking inflation protection and a hedge against policy uncertainty. Fawad Razaqzada of Forex.com said gold could ease in the short term before buying returns in force, pointing to the dollar’s rise and still-high bond yields.

Investor focus is now shifting to the Federal Reserve. Markets have sharply pared expectations for another rate hike in October, with CME FedWatch pricing a 22% chance, down from about 70% a week earlier, after US job growth slowed more than expected in September and prior payroll figures were revised lower.

Even so, traders still see an 84% probability of a hike in December, keeping interest-rate expectations central to the outlook for bullion and gold-related assets. The release of the September FOMC minutes later this week could give fresh clues on how far policymakers intend to push tightening after last month’s first rate increase in three years.

For investors, the near-term setup is a split screen: domestic retail and jewelry prices in Vietnam are easing, while global gold remains supported by long-term demand for safe-haven assets. Metals Focus said it expects gold to hit new record highs by 2027 and forecast an average price of $5,330 an ounce next year as investors look beyond dollar-denominated assets.