Gold prices rebound
Vietnam gold prices recovered slightly Wednesday morning following a 1.16% drop in the previous session.
Gold prices experienced a rebound, with the Saigon Jewelry Company reporting a price increase of 0.41% to VND145.5 million (US$5,600.02) per tael. This marked a reversal from a previous decline of VND1.7 million per tael, or 1.16%, observed on Tuesday. Despite the price rise, gold remains down 4.8% since the beginning of the year. The ring price for gold also gained 0.42% to VND145 million per tael on Wednesday.
On the global stage, gold prices saw a slight dip on Wednesday as investors grappled with the possibility that central banks might maintain higher interest rates for a longer duration to combat persistent inflation, according to Reuters. Spot gold slipped 0.2% to $4,345.99 per ounce, while U.S. gold futures for December delivery rose 0.2% to $4,382.70. The U.S. dollar held near its strongest level in two months, which makes dollar-priced bullion pricier for overseas buyers.
Richmond Federal Reserve President Tom Barkin cautioned on Tuesday that inflationary shocks could linger, warning of the risk of entrenched price pressures. Gold is typically viewed as a hedge against inflation, but its allure may wane when higher rates enhance returns on interest-bearing investments. Analyst Priyanka Sachdeva of Phillip Nova noted that gold's value is likely to be sensitive to headlines regarding oil and interest rates in the near term, as the metal is caught in a tug-of-war between safe-haven demand and rising-rate pressures.
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