A person holds gold bars at a shop in HCMC. Photo by VnExpress/Quynh Tran
Vietnam gold price rose Tuesday morning as global rates inched up as investors expect a Federal Reserve interest rate cut.
Saigon Jewelry Company gold bar went up 1.66% to VND152.9 million (US$5,777.32) per tael.
Gold ring rose 1.68% to VND151 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Vietnam’s gold price has surged 89.9% since the beginning of the year.
Globally spot gold added 0.27% to $4,144 per ounce, supported by growing expectations of a Federal Reserve interest rate cut next month and ahead of fresh U.S. economic data for further clues on the monetary policy.
“The market is increasingly getting convinced that the U.S. Federal Reserve is on track to cut interest rates in December,” said Bart Melek, head of commodity strategies at TD Securities.
Gold, a non-yielding asset, tends to do well in low-interest-rate environments, and during geopolitical and economic instability.
“We’re waiting for data and the expectation is that it may be somewhat weaker. Inflation probably not very elevated and that all points to gold doing fairly well,” Melek added.
