Gold prices rise
Vietnam gold prices edged higher Monday morning despite a slide in global bullion rates.
Gold prices experienced an increase this week, according to Saigon Jewelry Company. The gold bar price opened the week at VND146.2 million per tael, equivalent to US$5,635, marking a 0.14% rise. Similarly, the price of gold rings increased to VND145.7 million per tael. Globally, gold prices dipped on Monday due to rising oil prices, which raised concerns about inflation.
This led to speculation that the U.S. Federal Reserve could raise interest rates during their upcoming policy meeting, according to Reuters. Spot gold fell by 0.3% to $4,334.31 per ounce, while U.S. gold futures declined by 0.8% to $4,375.00.
Experts suggest that the current conditions are not favorable for gold. Tim Waterer, chief market analyst at KCM Trade, noted that the rising energy prices and expectations of rate hikes before the Federal Reserve and Bank of Japan meetings are creating a significant yield headwind for gold. Despite gold's reputation as an inflation hedge, higher interest rates tend to diminish its appeal, as it does not generate any yield.
Data from last week revealed that U.S. consumer prices surged in August, and a key measure of underlying inflation showed its largest increase in four months. These factors have further fueled expectations of a potential interest rate hike 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.
