Monday morning saw Vietnam gold bar prices hit an unprecedented peak, even as international precious metal values declined.
The Saigon Jewelry Company’s gold bar increased to VND126.9 million (US$4,823.81) per tael, marking a 0.24% rise from the prior peak of VND126.6 million set over the weekend.
Gold prices have increased by 50.7% so far this year and are currently about VND19.7 million per tael above international benchmarks.
The cost of a gold ring increased by 0.25% to VND121.3 million per taels. One tael is equivalent to 37.5 grams or 1.2 ounces.
Gold declined globally on Monday from a nearly two-week peak, with the dollar rising slightly. However, heightened anticipation for potential U.S. interest rate reductions after Federal Reserve Chairman Jerome Powell’s more accommodative stance last week provided some encouragement to the precious metal.
Reuters
reported.
Gold prices fell 0.2% to $3,364.29 an ounce following their peak since August 11 on Friday. U.S. gold contracts for December shipment declined 0.3% to $3,409.60.
The U.S. Dollar Index increased compared to its competitors following a decline to a four-week minimum, reducing the appeal of gold for international investors.
“There’s a decent level of support for gold around $3,350 over the near term, with Powell’s dovish hints allowing gold to carve out a prominent swing low on Friday,” City Index senior analyst Matt Simpson said.
A prolonged upward movement may depend on lower PCE inflation and weaker job market figures ahead. However, since inflation is expected to stay high, gold’s increases might be limited after the anticipated short-term rise.
