Gold prices gain
Vietnam gold prices rose on Friday afternoon amid an uptick in global bullion rates.
Gold prices in Vietnam have increased, with Saigon Gold Jewelry Company's gold bar price climbing 0.42% to VND143.9 million (US$5,561.03) per tael and gold ring prices also rising by the same rate to VND143.4 million per tael. A tael is equivalent to 37.5 grams or 1.2 ounces.
On a global scale, gold edged up on Friday due to a weakened dollar, but it is still projected to experience a slight weekly decline. This assessment comes as investors evaluate the Federal Reserve's signals regarding interest rates.
Spot gold saw a 0.2% increase to US$4,177.82 per ounce, but has declined 0.5% so far this week. US gold futures for December delivery surged 0.7% to US$4,199.10.
Federal Reserve Chair Kevin Warsh provided minimal clues during the International Monetary Fund meeting in Bangkok on Friday, leaving doubts about the central bank's plans to maintain interest rates at their current level in October. Although inflation remains a concern and further rate hikes cannot be ruled out, Warsh's recent comments suggest a lack of urgency in implementing consecutive rate increases.
Gerald Gan, chief investment officer at Reed Capital Partners, stated this according to Bloomberg. Kevin Wong, a senior market analyst at OANDA, noted that gold has been confined to a range of US$4,221, with the lower end of the range hitting US$4,075 earlier in the week, according to Reuters.
Inflationary trends persist, as the core CPI data and core PPI data for September have been surpassing expectations. Gold is typically viewed as a hedge against inflation, but higher interest rates diminish its attractiveness due to its non-yielding nature.
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