A person holds a gold coin in a jewelry shop in Hanoi. Photo by VnExpress/Ngoc Thanh
Vietnam gold price rose Tuesday to the highest since Oct. 21 as global rates soared amid anticipations of the resumption of the U.S. government.
Saigon Jewelry Company increased 1.20% to VND152 million (US$5,777.28) per tael. A tael equals 37.5 grams or 1.2 ounces.
Gold ring rose 1.35% to VND149.8 million per tael. Gold price in Vietnam has risen 80.5% so far this year.
Globally gold extended gains to a near three-week high on Tuesday, helped by growing expectations of another U.S. Federal Reserve interest rate cut in December and signs of an end to the U.S. government shutdown, Reuters reported.
Spot gold was up 0.7% at $4,142.83 per ounce, its highest since Oct. 24.
The U.S. Senate passed a deal that would restore U.S. federal funding and end the longest shutdown late on Monday.
Key economic indicators such as the U.S. non-farm payrolls report have been delayed due to the federal government shutdown. An end to the shutdown in the coming days will offer more clarity on the U.S. economic outlook and the Fed’s interest rate path.
“The idea that the U.S. shutdown is ending was really more met as lifting a level of uncertainty that gave markets permission to reengage with what has been one of the main speculative narratives this year,” said Ilya Spivak, head of global macro at Tastylive.
“The bias for the rest of the year is at this point favoring the upside still. At this point, the path of least resistance for gold is back to October’s high, and then we might be heading higher thereafter.”
