Gold prices fell at the beginning of the week despite escalating Middle East tensions

The USD continued to increase in value thanks to its role as a safe haven asset after the US directly participated in the war between Israel and Iran. In contrast, the world gold price turned down in the first trading session of the week, while the domestic gold price still increased slightly.

International gold falls under strong pressure from USD

On the morning of June 23, the international spot gold price decreased by 13.44 USD /ounce to 3,355 USD/ounce, equivalent to a decrease of 0.4% compared to the end of last week. The price of gold futures for August delivery on the Comex floor also decreased by 15.3 USD/ounce to 3,370 USD/ounce. The main reason came from the increase in the USD price when investors turned to safe assets in the context of escalating tensions in the Middle East. The US Dollar Index (DXY) measuring the strength of the greenback increased to 99 points in the first session of the week, the highest level in the past week.

Last weekend, the US carried out a surprise airstrike on three Iranian nuclear facilities, marking a serious escalation in the regional conflict. President Donald Trump vowed to continue the attack if Iran did not accept reconciliation. This move has raised concerns about Iran's response, especially in the context of Iran's announcement that it would block the Strait of Hormuz if it is pressed further, leading to the risk that the vital oil transportation route could be disrupted.

Despite falling back a week ago, gold prices are still nearly 30% higher than at the beginning of the year. In addition to geopolitical risks, expectations of the Fed easing monetary policy are also one of the factors driving gold prices. This week, US Federal Reserve Chairman Jerome Powell will testify before Congress. Investors are waiting for statements on the impact of new tariffs and developments in the Middle East on US monetary policy. Investors are also waiting for economic data such as the PMI index, the number of unemployment claims and the personal consumption expenditure (PCE) index - the Fed's preferred inflation measure - to be released later this week.

Although the world situation continued to follow a downward trend in the first session of the week, domestic gold prices still increased. SJC gold bar prices increased by 300,000 VND/tael compared to the end of the week. Saigon Jewelry Company (SJC) listed the buying price at 117.7 million VND/tael, while the selling price was 119.7 million VND/tael. Some other gold trading companies also listed the same price, only Mi Hong sold lower at only about 119 million VND/tael. The price of gold rings at SJC and Bao Tin Minh Chau is trading around 114.5 - 117.5 million VND/tael (buy - sell).

USD appreciates, exchange rate slightly adjusted

This morning, the State Bank announced the central exchange rate on June 23 at 25,028 VND/USD, a slight decrease of 3 VND/USD. Correspondingly, commercial banks also lowered their exchange rates but still kept them at the maximum ceiling as prescribed, 5% higher than the central exchange rate.

Exchange rate at Vietcombank on June 23.

At Vietcombank, the exchange rate is currently listed at 25,919 VND/USD (buy by transfer) and 26,279 VND/USD (sell). In the free market, the USD selling price continues to fluctuate around 26,400 VND, without any significant changes. The exchange rate is quite stable despite the USD's price increase, partly because the exchange rate has increased significantly compared to the previous period. Compared to the beginning of the year, the USD/VND exchange rate at Vietcombank has increased by nearly 2.85%.

Source: https://baodautu.vn/gia-vang-giam-phien-dau-tuan-bat-chap-cang-thang-trung-dong-leo-thang-d311631.html