Gold prices edge up
Vietnam gold prices rose Thursday morning amid a slight drop of the precious metal on global markets.
Gold prices in Vietnam have ticked upward by 0.21% to VND144.6 million (approximately US$5,554.92) per tael, according to the Saigon Jewelry Company. A tael, which is equivalent to 37.5 grams or 1.2 ounces, saw a 0.34% increase in the price of gold rings, reaching VND146 million per tael. Throughout the year, gold prices in Vietnam have experienced a decline of 5.4%.
Globally, the price of spot gold has seen a slight decline of 0.22% to $4,398.10 per ounce. This decrease in gold prices can be attributed to a less-than-expected U.S. July inflation report, which reduced the likelihood of a Federal Reserve rate hike in September, leading to a drop in Treasury yields. The Strait of Hormuz remains a crucial geopolitical factor impacting oil prices, inflation expectations, and defensive demand.
Despite ongoing talks between the U.S. and Iran regarding the reopening of the strait, no agreement has been reached, as Iran's top security official has linked its reopening to specific conditions, including the freezing of assets and addressing regional conflicts. Additionally, the Strait of Hormuz and Bab el-Mandeb continue to present shipping constraints for various commodities, including gold.
The market dynamics surrounding gold are characterized by a dual influence: lower yields provide support for non-yielding metals, while ongoing concerns over Gulf shipping risks contribute to maintaining relatively high oil prices, which in turn complicates the prospects for rate relief by the Federal Reserve.
Written by urgent.news from VnExpress Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
