Gold bars at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Vietnam gold prices kept climbing on Monday afternoon to reach another record high.
Saigon Jewelry Company gold bar price rose 0.16% to a new historic peak of VND127.1 million (US$4,830.4) per tael following a 0.24% gain to VND126.9 million in the morning.
Gold ring price went up by 0.24% to VND121.6 million per tael. It had earlier increased by 0.25% to VND121.3 million. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold slipped from a near two-week high on Monday as the dollar strengthened, although rising bets of interest rate cuts by the U.S. Federal Reserve following Chair Jerome Powell’s dovish pivot last week, lent some support to bullion, Reuters reported.
Spot gold inched down 0.1% at $3,367.86 per ounce after hitting its highest since August 11 on Friday. U.S. gold futures for December delivery eased 0.2% to $3,412.50.
Powell on Friday signaled a possible rate cut at the Fed’s meeting next month, saying that risks to the job market were rising but inflation remained a threat, and that a decision wasn’t set in stone.
Markets are now pricing in an 87% chance of a quarter-point rate cut in the September policy meeting, and a cumulative reduction of 48 basis points by this year-end, according to CME FedWatch Tool.
Gold tends to appreciate in a low-interest-rate environment, which reduces the opportunity cost of holding non-yielding bullion.
