Gold price decline
Vietnam gold prices slipped Monday morning amid a drop in global bullion rates.
Gold prices dipped slightly in Vietnam's Saigon Jewelry Company, with a weekly decline of 0.4% to VND147 million (US$5,640.83) per tael of gold bar. Similarly, gold ring prices also decreased by roughly the same rate to VND146.5 million per tael. Globally, gold prices registered a minor drop on Monday, as strong U.S. job data bolstered expectations for higher interest rates, while market participants awaited crucial U.S. inflation figures for further insight into the Federal Reserve's policy direction.
Spot gold prices fell 0.5% to $4,405.47 per ounce, while U.S. gold futures for December delivery slipped 0.5% to $4,452.20. The positive jobs report brought some pressure on the metal, but it was not enough to guarantee a September rate hike. Tim Waterer, chief market analyst at KCM Trade, stated that the most significant factor to watch this week is the U.S. Consumer Price Index (CPI).
A robust inflation reading would strengthen the case for a Federal Reserve rate hike, push yields even higher, and add more weight to the argument against holding non-yielding bullion like gold.
While gold is generally considered an inflation hedge, higher interest rates tend to diminish its attractiveness.
Written by urgent.news from VnExpress Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
