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 prices fell under strong pressure from the strengthening US dollar.

On the morning of June 23rd, the international spot gold price fell by $13.44 per ounce to $3,355 per ounce, equivalent to a 0.4% decrease compared to the end of last week. August gold futures on the Comex exchange also fell by $15.3 per ounce to $3,370 per ounce. The main reason for this decline was the strengthening of the US dollar as investors shifted towards safe-haven assets amid escalating tensions in the Middle East. The US Dollar Index (DXY), which measures the strength of the greenback, rose to 99 points at the start of the week, its highest level in a week.

Last weekend, the US unexpectedly launched airstrikes on three Iranian nuclear facilities, marking a serious escalation in the regional conflict. President Donald Trump declared he would continue attacks if Iran did not accept a compromise. This move has raised market concerns about Iran's reaction, especially given Iran's statement that it would block the Strait of Hormuz if further pressured, potentially disrupting vital oil shipping lanes.

Despite having retreated considerably from a week ago, gold prices are still nearly 30% higher than at the beginning of the year. Besides geopolitical risks, expectations of a Fed easing monetary policy are also driving gold prices. This week, Federal Reserve Chairman Jerome Powell will testify before Congress. Investors are awaiting statements addressing the impact of new tariffs and developments in the Middle East on US monetary policy. Investors are also anticipating economic data such as the PMI, jobless claims, and the Personal Consumption Expenditures (PCE) index – the Fed's preferred measure of inflation – which will be released soon.

Despite the continued downward trend globally at the start of the week, domestic gold prices edged up. SJC gold bars increased by 300,000 VND/ounce compared to the end of last week. Saigon Jewelry Company (SJC) listed the buying price at 117.7 million VND/ounce and the selling price at 119.7 million VND/ounce. Several other gold trading companies also listed similar prices, except for Mi Hong, which sold at a lower price of around 119 million VND/ounce. Gold rings at SJC and Bao Tin Minh Chau are trading around 114.5 - 117.5 million VND/ounce (buy - sell).

USD appreciates, exchange rate adjusts slightly.

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

Exchange rates at Vietcombank on June 23rd.

At Vietcombank, the exchange rate is currently listed at 25,919 VND/USD (buying via transfer) and 26,279 VND/USD (selling). On the free market, the selling price of USD continues to fluctuate around 26,400 VND, with no significant changes recorded. The exchange rate remains relatively stable despite the appreciation of the USD, partly due to a significant increase 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