The surge of Vietnam gold has remained unbroken this year, reaching yet another record high early Saturday, with gains now totaling 50% from the start of the year.
The gold bar from Saigon Jewelry Company increased by 0.96%, reaching VND126.6 million (US$4,804.55) per tael.
The price of a gold ring reached an all-time high of VND121 million per tael. One tael is equivalent to 37.5 grams or 1.2 ounces.
This year’s 50% rise in gold surpasses the performance of most investment assets.
By contrast, the stock index VN-Index increased by 30% during this time, whereas the U.S. dollar went up by 2.74% against the Vietnamese đồng.
Friday saw an increase in gold prices, fueled by rising hopes for a rate reduction in September following comments from Federal Reserve Chairman Jerome Powell during the Jackson Hole summit, according to information from a financial data website.
Mining.com.
Gold prices climbed 1% to $3,372.60 per ounce, hitting a near-two-week peak. U.S. gold contracts also gained 1%, climbing to $3,416.90 per ounce in New York.
During his highly anticipated address on Friday morning, Powell highlighted that the U.S. economic landscape faces a “difficult scenario,” where concerns about rising inflation have increased while worries regarding job market stability have decreased.
As per CME’s FedWatch tool, market participants currently predict a 90% chance of a 25-basis-point interest rate reduction in September, an increase from 75% before the address.
“Powell startled a tense market by initiating the express lanes for a September interest rate reduction, which has enhanced all assets, even gold,” said Tai Wong, an independent precious metals dealer.
Reuters
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