Gold prices fall
Vietnam gold bar prices dropped Wednesday morning despite gains in global bullion rates.
Gold prices experienced a decline, with a 1.1% drop in the price of gold bars at Saigon Jewelry Company to VND142.7 million (US$5,451.88) per tael. Similarly, the price of gold rings fell to VND142.2 million per tael. A tael weighs 37.5 grams or 1.2 ounces.
On a global scale, gold prices initially increased on Wednesday due to a decrease in Treasury yields, leaving investors anticipating insights from the U.S. central bank's July meeting minutes. Spot gold rose by 0.5% to $4,356.55 per ounce, following a 2% decline the previous day. U.S. gold futures, meanwhile, saw a minor drop of 0.2% to $4,410.20.
Lower expectations for Federal Reserve interest rate hikes and mounting fiscal budget concerns have been beneficial for gold, according to Kelvin Wong, a senior market analyst at OANDA. Reduced interest rates decrease the opportunity cost of holding gold.
For gold to potentially reach $4,505, it must break above $4,390. Conversely, a break below $4,300 could drive the price down to $4,200 and $4,150, as projected by Lukman Otunuga, head of market research at FXTM.
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