Gold bars on sale at a store in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Vietnam’s gold price rally extended into the afternoon to reach a second record high on Friday.
Saigon Jewelry Company gold bar price went up another 0.31% to VND129.3 million (US$4,907.96) per tael following a similar increase to VND128.9 million in the morning.
Bullion has gained 53.5% since the start of the year and is now VND20.3 million per tael higher more expensive than global rates.
Gold ring price was at VND123.5 million per tael, up 0.32% from earlier in the day. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold prices edged lower on Friday but were headed for a monthly gain, according to Reuters.
Spot gold was down 0.2% at $3,411.29 per ounce on profit-taking. Bullion gained 3.7% so far in August and hit $3,423.16, its highest level in more than a month, in the previous session. U.S. gold futures for December delivery eased 0.1% to $3,470.80.
Federal Reserve Governor Christopher Waller on Thursday stepped up his call for cutting short-term U.S. borrowing costs, saying he would support an interest-rate cut next month and further reductions over the next three to six months.
Non-yielding gold typically performs well in a low-interest-rate environment.
Bank of America analysts expect the rally to persist and are sticking with their forecast that gold will reach $4,000 an ounce by mid-2026.
“Potential rate cuts amid increasing inflation create fertile ground for dollar depreciation,” they wrote in a report last week, as cited by Kitco News. “Rate cuts in an environment of continued elevated inflation would, in all likelihood, push the precious metal higher.”
