Gold prices drop
Vietnam gold prices fell to a near one-month low Wednesday morning as global bullion rates headed higher after a three-day decline.
The price of gold at the Saigon Jewelry Company dropped by 0.82% to VND145.4 million per tael, marking its lowest point since August 19. This decline is the lowest since August 19. A tael is equivalent to 37.5 grams or 1.2 ounces. Similarly, the price of a gold ring fell to VND144.9 million per tael. Globally, gold experienced a rise of 0.5%, reaching $4,378.60 per ounce.
However, this increase came after a drop of 2.6% over the previous three sessions. Oil prices also continued to climb, with Brent crude approaching $100 per barrel. This surge in oil prices has raised concerns about inflation ahead of the release of U.S. consumer price data. According to Ahmad Assiri, a market strategist at Pepperstone Group, a lower-than-expected inflation reading could be beneficial for gold traders.
This would suggest that maintaining current interest rates might be advisable. Assiri further explained that the main concern lies in a potential increase in inflation, which could strengthen the argument for raising interest rates. Such a scenario could exert significant pressure on gold prices. Gold has been trading within a relatively narrow range around $4,400 per ounce following a low of around $4,000 in July.
Investors have been closely monitoring the outlook for Fed policy. Although gold is currently facing some short-term challenges, many investors still anticipate a rise in prices, given its longstanding role as a hedge in investment portfolios.
Written by urgent.news from VnExpress Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
