Local markets in Vietnam responded positively Thursday morning as global gold prices surged to their highest level in two weeks, reflecting renewed investor interest in the metal amid rising economic uncertainty.
Local Market Gains
In Hanoi, gold bars produced by the Saigon Jewelry Company (SJC) rose 0.57%, reaching VND121.3 million per tael—approximately USD $4,668.98. Gold rings also followed the upward trend, increasing 0.43% to VND115.5 million per tael. One tael is equivalent to 37.5 grams, or roughly 1.2 troy ounces.
Global Drivers Behind the Rally
Globally, spot gold climbed 0.8% to $3,340.53 an ounce, marking its highest point since May 9. The uptick comes amid growing investor concern over the U.S. government’s expanding debt load and lackluster demand for 20-year Treasury bonds—factors that signal potential weakening in confidence toward U.S. assets.
Adding to the bullish momentum is the softening of the U.S. dollar, which has hovered near a two-week low. The decline in the dollar’s value has made gold more attractive to investors holding other currencies, further stoking demand.
“Gold’s bullish reversal is supported by a weaker U.S. dollar and lingering stagflation risks in the U.S. economy,” noted Kelvin Wong, Senior Market Analyst for Asia Pacific at OANDA.
Investor Sentiment Shifts
The recent move into gold reflects broader risk aversion in financial markets, as investors seek safe-haven assets amid persistent concerns over inflation, geopolitical tensions, and central bank policy shifts.
With both local and global factors aligning, gold’s ascent has prompted speculation about its potential to take center stage in the current economic narrative.
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