Dollar slips below 100 mark, global gold prices rise sharply at start of week

Mon Aug 03 2026

After a week of sharp fluctuations, global currency and gold markets entered the new week with mixed signals: the U.S. dollar cooled after a strong rally, while gold prices rebounded significantly.

On Monday morning, August 3, the State Bank of Vietnam set the daily reference exchange rate at VND25,358 per USD, up VND20 from the previous session.

At commercial banks, the dollar was quoted at around VND26,080-26,490, with selling prices down by about VND10-30 from the peak recorded last week.

On the informal market, the dollar traded around VND26,260-26,280, about VND120-140 lower than at the beginning of last week. The simultaneous easing of exchange rates in both the banking and unofficial markets suggests pressure on the Vietnamese dong has somewhat subsided after a period of strong dollar gains.

In global markets, the Dollar Index (DXY) fell below the 100-point threshold, trading around 99.5-99.9. The weaker greenback has become a significant factor supporting gold prices, as the precious metal typically benefits when the US currency declines.

In contrast to the dollar’s movement, global gold prices showed signs of regaining momentum. According to market data updated at the start of the week, spot gold briefly rose by about $30 per ounce to around $4,072 per ounce.

The rally in the precious metal was driven by a weaker US dollar and increased demand for safe-haven assets amid continued uncertainty in global markets.

U.S. monetary policy remains a key factor influencing gold prices. The Federal Reserve has maintained its policy rate range at 3.5-3.75% this year. The Fed’s July monetary policy report showed inflation remained significantly above its 2% target, while the U.S. economy continued to expand and the labor market remained relatively stable.

In the short term, markets are focusing on the possibility of policy changes at upcoming Fed meetings. Any signals that monetary policy could become more accommodative would provide additional support for gold, as lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold.

Meanwhile, geopolitical tensions and volatility in energy markets continue to reinforce gold’s role as a safe-haven asset.

In Vietnam, SJC gold bars and gold rings remained relatively stable on Monday after the weekend break. Many brands quoted SJC gold bars at around VND137-141 million per tael, while gold rings were traded at around VND140.5-142.3 million ($5,410) per tael.

The fact that domestic gold prices have yet to immediately reflect the increase in global prices is seen as a wait-and-see stance among market participants at the start of the new trading week.

If international gold prices maintain their upward momentum while the USD/VND exchange rate remains under less pressure, domestic gold prices are likely to rise in early-week sessions to narrow the gap with global markets.

However, the buy-sell spread in the domestic market remains wide at around VND4 million ($152,160) per tael. This continues to pose significant risks for short-term investors even when gold prices are rising.

With such a large spread, gold prices need to increase sufficiently for buyers to break even after purchasing. If global markets see a profit-taking correction, domestic gold prices could quickly adjust downward in response.

Source: https://theinvestor.vn/