Gold prices in Vietnam edged higher on Friday morning, following global bullion trends. The Saigon Jewelry Company saw a 0.25% increase in its gold bar price, which rose to VND 118 million (approximately US$4,526.46) per tael. Similarly, the gold ring price gained 0.26%, reaching VND 114.3 million per tael. One tael equals 37.5 grams or 1.2 ounces.
Global Market Influences on Gold Prices
Globally, gold saw a rise on Friday, with spot gold up by 0.5% at $3,368.49 per ounce, bringing its weekly gains to 2.5%. U.S. gold futures also climbed by 0.5%, reaching $3,391.40 per ounce. This uptick in gold prices comes amidst weak U.S. economic data, which has overshadowed initial optimism following a phone call between U.S. President Donald Trump and Chinese President Xi Jinping.
Factors Influencing Gold’s Rise
The recent soft U.S. economic data, such as the rise in the number of Americans filing new unemployment benefits to a seven-month high, has overshadowed the optimism from the Trump-Xi call. This weaker economic performance has helped gold prices move higher as investors look for safer assets amidst the uncertainty.
Tim Waterer, chief market analyst at KCM Trade, pointed out that while the Trump-Xi call initially sparked optimism, the fading enthusiasm over that meeting combined with the soft U.S. economic data helped gold prices rise.
Payroll Data in Focus
Investors are closely watching the upcoming U.S. nonfarm payroll (NFP) data, which is expected to be a major market mover. Waterer stated that the NFP data could act as a catalyst for a breakout in gold prices, especially if the data significantly misses expectations.
Gold as a Safe-Haven Asset
Gold, traditionally viewed as a safe-haven asset, tends to perform well in times of economic uncertainty and low-interest-rate environments. This characteristic makes it a favorable investment during times of volatility, particularly as Federal Reserve policymakers have indicated that inflation remains a primary concern over cooling in the labor market. As a result, a prolonged hold on monetary policy adjustments is expected.
With continued uncertainty surrounding the global economy and trade tensions, gold’s role as a protective asset remains strong, supporting its upward movement in the markets.
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