Gold prices rebound from morning drop

Gold prices in Vietnam saw a notable recovery during the Friday noon session, bouncing back from an early morning decline. The Saigon Jewelry Company (SJC) reported that gold bar prices climbed 0.68% to reach VND 176.1 million ($6,692.13) per tael, effectively reversing a 0.34% drop seen earlier in the day. Similarly, gold rings rose by 0.69% to VND 175.8 million per tael, following a parallel dip in the morning hours.

On the global stage, gold also experienced a Friday rebound, driven largely by technical buying. Spot gold rose 1.5% to $4,717.49 per ounce, recovering from a nearly two-month low reached just a day prior. Despite this daily gain, the precious metal remains on track for its third consecutive weekly loss, having dropped more than 6% over the course of the week and over 10% since the onset of the U.S.-Israeli conflict with Iran in late February.

The downward pressure on gold is primarily linked to a strengthening U.S. dollar and a hawkish stance from the Federal Reserve. The dollar has gained over 2% this month as investors seek it out as a primary safe-haven asset. Simultaneously, the Fed’s decision on Wednesday to keep interest rates steady—combined with warnings of persistent inflation—has dampened expectations for near-term rate cuts.

Market dynamics currently present a double-edged sword for bullion: while gold is traditionally an inflation hedge, high interest rates increase the appeal of yield-bearing assets, and a stronger dollar makes gold more expensive for international buyers. Technical analysts, however, suggest that if gold can maintain its current support levels, it may see a further recovery toward the $4,800 mark, where it previously experienced a breakdown.