A person holds gold jewelry at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Gold bar price rose by 1.75% to VND87.1 million (US$3,433.53) per tael in Vietnam Wednesday morning while global bullion rates hit a two-week high.
Gold ring price increased by 1.18% to VND85.8 million per tael. A tael equals 37.5 grams or 1.2 ounces.
Globally, gold prices scaled a two-week peak on Wednesday, supported by escalating geopolitical tensions and expectations of another rate cut by the U.S. Federal Reserve next week, and ahead of the closely watched U.S. inflation report later in the day, Reuters reported.
Spot gold was up 0.2% at $2,698.47 per ounce and hit its highest since Nov. 25. U.S. gold futures rose 0.6% to $2,734.70.
Investors’ focus is on the U.S. Consumer Price Index (CPI), which is expected to have risen by 0.3% in November. The data could help set expectations for the Fed’s 2025 policy.
The Fed is likely to cut rates by 25 basis points on Dec. 18, according to 90% of economists polled by Reuters, with most expecting a pause in late January amid concerns over inflationary risks.
Gold is considered a safe investment during economic and geopolitical turmoils and tends to thrive in a low-interest-rate environment.
