Gold prices rise
Vietnam gold prices edged up Friday morning as the metal traded flat on global markets.
Gold prices experienced a slight increase, with the gold bar price at Saigon Jewelry Company rising 0.13% to VND148.6 million (US$5,697.31) per tael, although it was down 0.07% from the beginning of the week. The price of gold rings increased by 0.14% to VND148.1 million per tael. A tael is equivalent to 37.5 grams or 1.2 ounces. Local gold prices have decreased by 2.75% since the start of the year, currently trading around VND6.8 million per tael higher than global rates.
Global gold prices remained unchanged on Friday, with a potential small weekly increase on the horizon as eyes turned towards the highly anticipated U.S. payrolls data. This data would provide insights into the Federal Reserve's upcoming decision on interest rates. Spot gold maintained its position at $4,468.27 per ounce, after a 2% surge on Thursday. U.S. gold futures for December delivery slipped by 0.6% to $4,514.60.
Weak economic figures and a rise in unemployment could potentially undermine the case for a rate hike, which might lead to a recovery in gold prices. However, the metal remains vulnerable to shifting sentiment, particularly with inflation data releases expected next week, according to Ross Maxwell, the global strategy operations lead at VT Markets.
The market continues to benefit from central bank demand, potentially limiting the extent of any decline. Despite being perceived as an inflation hedge, elevated interest rates tend to negatively impact the non-yielding asset.
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