Gold extends plunge after reaching historic levels

Vietnam’s gold prices continued to decline on Saturday morning after reaching several record highs earlier in the week. Saigon Jewelry Company (SJC) gold bars dropped by 0.31%, falling to VND97.4 million ($3,803.95) per tael. This marks a nearly 3% decrease from the historic peak of VND100.4 million recorded on Thursday.

Gold ring prices have also experienced a notable drop, falling 2.4% in the same period to VND98.3 million per tael.

On the global market, gold fell by 1% on Friday as a stronger U.S. dollar and profit-taking triggered a pullback. Despite this decline, the precious metal remained on track for a third consecutive weekly gain due to ongoing geopolitical and economic uncertainties, as well as expectations of potential U.S. Federal Reserve interest rate cuts.

Spot gold was down 1%, trading at $3,015.43 per ounce, while U.S. gold futures settled 0.7% lower at $3,021.40. However, bullion has still gained 1% over the course of the week.

Gold has long been considered a safe-haven investment during periods of geopolitical tension and economic instability. The metal typically performs well in low-interest-rate environments and has already hit 16 record highs this year, reaching an all-time peak of $3,057.21 per ounce on Thursday.

“The market is taking a bit of a breather. There’s some profit-taking at these levels, and the dollar is stronger today,” said Marex analyst Edward Meir.

Peter Grant, vice president and senior metals strategist at Zaner Metals, noted that “ongoing safe-haven demand, both based on trade concerns and geopolitical risks, continues to be the primary driving force” behind gold’s rally.