The Saigon Jewelry Company (SJC) reported that the price of its gold bars climbed 0.42% to VND118.5 million (approximately US$4,558.22) per tael. Meanwhile, the price of gold rings increased by 0.62% to VND114 million per tael. A tael is a traditional unit of weight equal to 37.5 grams or 1.2 ounces.
Global Gold Prices Under Pressure
Despite the uptick in Vietnam, global gold prices retreated slightly as the U.S. dollar strengthened and investors turned cautious ahead of a key U.S. inflation report that may offer further clues on the Federal Reserve’s interest rate path, according to Reuters.
Spot gold fell 0.5% to $3,300.59 per ounce, while U.S. gold futures were down by the same margin, trading at $3,298.30. The dollar index edged higher, making gold more expensive for holders of other currencies. So far this week, global bullion prices have declined 1.7%.
“Gold prices are consolidating within a broader range now, largely due to growing confidence in the U.S. dollar,” said Brian Lan, Managing Director at GoldSilver Central in Singapore. “These are typical market fluctuations, though the trading range has widened slightly.”
Interest Rate Outlook Remains Key
In remarks on Thursday, San Francisco Federal Reserve President Mary Daly indicated that while the Fed may still cut interest rates twice in 2025, for now, rates should remain unchanged to ensure inflation trends toward the central bank’s 2% target.
Gold, a non-yielding asset, typically benefits in a low-interest-rate environment, as it becomes more attractive compared to interest-bearing investments.
As investors await the upcoming U.S. inflation report, market watchers continue to assess how evolving interest rate expectations may influence the outlook for gold in both global and regional markets.
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