Gold prices drop
Vietnam gold prices rose on Monday afternoon as global bullion rates swung between gains and losses.
Gold prices in Vietnam experienced a slight decline on Monday. The price of gold bars at Saigon Gold Jewelry Company dropped 0.35% to VND144.3 million per tael, while gold ring prices also decreased to VND143.8 million per tael. A tael is equivalent to 37.5 grams or 1.2 ounces. Globally, gold prices saw fluctuations on Monday as investors considered the impact of falling oil prices and anticipated economic reports regarding the Federal Reserve's future interest-rate decisions.
Spot gold experienced a 0.2% decrease, reaching $4,185.13 per ounce, after briefly hitting its highest level since October 2. US gold futures for December delivery also fell by 0.2%, settling at $4,209.70. The metal had previously risen due to lower oil prices, following reports of an energy ceasefire between Russia and Ukraine.
The US dollar remained stable near its strongest level in a year and a half, making greenback-priced bullion more expensive for buyers holding other currencies. However, the overall economic environment remains challenging, as persistent inflationary pressures suggest that the Federal Reserve may raise interest rates again, which could support Treasury yields and increase pressure on real rates.
Manav Modi, a commodities analyst at Motilal Oswal Financial Services, noted that gold is typically considered a hedge against inflation; however, higher interest rates can make this non-yielding asset less attractive to investors.
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